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2. Given the required sales mix and assuming sales of Product 1 are normally distributed with a mean of 60,000 units and a standard deviation
2. Given the required sales mix and assuming sales of Product 1 are normally distributed with a mean of 60,000 units and a standard deviation of 10,000 units, what is the probability of at least breaking even?
\begin{tabular}{|l|r|r|r|r|} \hline & \multicolumn{3}{|c|}{ Product } \\ \hline & 1 & \multicolumn{1}{|c|}{2} & \multicolumn{1}{|c|}{ 3 } & \multicolumn{1}{|c|}{ Total } \\ \cline { 2 - 5 } & $50 & $30 & $80 & \\ \hline Selling Price (per unit) & 20 & 12 & 50 & \\ \hline Variable Cost (per unit) & 30% & 60% & 10% & \\ \hline Required Sales Mix & 100,000 & 200,000 & 50,000 & \\ \hline Maximum Sales (units) & 2 & 1.5 & 3 & \\ \hline Use of capacity (hours) & & & & 455,000 \\ \hline Total Capacity Hours Available & & & & $4,000,000 \\ \hline Total Fixed Costs & & & & \\ \hline \end{tabular} \begin{tabular}{|l|r|r|r|r|} \hline & \multicolumn{3}{|c|}{ Product } \\ \hline & 1 & \multicolumn{1}{|c|}{2} & \multicolumn{1}{|c|}{ 3 } & \multicolumn{1}{|c|}{ Total } \\ \cline { 2 - 5 } & $50 & $30 & $80 & \\ \hline Selling Price (per unit) & 20 & 12 & 50 & \\ \hline Variable Cost (per unit) & 30% & 60% & 10% & \\ \hline Required Sales Mix & 100,000 & 200,000 & 50,000 & \\ \hline Maximum Sales (units) & 2 & 1.5 & 3 & \\ \hline Use of capacity (hours) & & & & 455,000 \\ \hline Total Capacity Hours Available & & & & $4,000,000 \\ \hline Total Fixed Costs & & & & \\ \hline \end{tabular}Step by Step Solution
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