The J&S Michnowski Audio Company manufactures radios for the middle market. The company is considering whether to manufacture a new radio line that it will sell for $90 per unit. The marketing staff of the company estimates that the demand for the new radio can be described as a normal distribution with an expected value of 350,000 units and a standard deviation of 150,000 units. The firm’s accountant, in consultation with the engineering staff, has estimated that the fixed costs for the new radio would be $10 million and the variable cost per unit would be $40. lopu85 Required: ' 457 The management of J&S Michnowski Audio Company in order to decide whether to manufacture the new radio line wants to know:

a The probability that the company will realize a profit.

b The probability that the company will sell enough units so that it will at least cover its fixed costs.

¢ The probability of realizing a profit of at least $12 million.