1. Before departing for its weekly tour around the Caribbean, the King of the Seas cruise ship stocks its gift shop with a made-to-scale replica of the ship, which has been quite popular with its passengers. Each replica costs $60 wholesale and sells for $100 at the gift shop. The demand for these replicas over the week at sea is normally distributed with mean 48 and standard deviation 10. The gift shop has 36 replicas in stock from the previous tour, when the supplier arrives to make the usual delivery before departure. The company uses a 30 percent annual interest rate to evaluate the cost of inventory. a) How many additional replicas should the gift shop buy from the supplier if sales are lost when it runs out of stock during the week? b) How many additional replicas should the gift shop buy if passengers still buy it when stock runs out, but the gift shop will need to incur an extra $10 fee for delivering it to their desired address? c) How should the shop's weekly decision change if the supplier charges a $100 fee every time a new order is placed? Explain intuitively