A new edition of a very popular textbook will be published a year from now. The publisher currently has 1,000 copies on hand and is deciding whether to printing another before the new edition comes out. The publisher estimates that demand for the book during the next year is governed by the probability distribution given in the attached file. A production run incurs a fixed cost of $15,000 plus a variable cost of $20 per book printed. Books are sold for $190 per book. Any demand that cannot be met incurs a penalty cost of $30 per book, due to loss of goodwill. Up to 1,000 of any leftover books can be sold to Barnes and Noble for $45 per book. The publisher is interested in maximizing expected profit. The following print-run sizes are under consideration: 0 (no production run) to 16,000 in increments of 2000.

Use simulation with 1000 replications. then answer the following questions: What is the optimal print-run size? (no commas)

For your optimal decision, the publisher can be 90% certain that the actual profit associated with remaining sales of the current edition will be between what two values? (express your answer in dollars, no comma or $-sign): Between___ and ____

Demand Probability 3000 0.20 4000 0.35 5000 0.25 6000 0.10 8000 0.05 10000 0.05