Expat Joy LLC specializes in selling turkeys to foreigners. The demand for turkeys is characterized by uniform probability distribution from 2,300 to 3,150. Fresh whole turkeys cost $385 each, and Expat Joy company sells them to Americans for $550.00 each.

1. Suppose that after Thanksgiving, fresh turkeys go so bad that the company has to dump all unsold poultry. Using marginal economic analysis, how many fresh turkeys should be ordered?

Cost per Turkey = $385

Selling price = $550

C(u) (Shortage cost) = $385

C(s) (Salvage cost) = 550 - 385 = $165

P (demand EOQ) = C(u) / C(s)+C(u) = 385/(165+385) = 0.3

EOQ = ?

2. Attention: new conditions. Now suppose turkeys are not fresh but frozen (the cost and price are the same), and the demand for them can be approximated by a normal distribution with = 2,725 and standard deviation = 100. Leftover frozen turkeys don't go bad too quickly, and after Thanksgiving the company sells those for $211.90 each.How many frozen turkeys should be ordered?