Geoff Gullo owns a small firm that manufactures "Gullo Sunglasses". He has the opportunity to sell a particular seasonal model to Land's Start, a catalog retailer. Geoff offers Land's Start two purchasing options. Use Table 13.4. Option 1: Geoff offers to set his price at $68 and agrees to credit Land's Start $55 for each unit Land's Start returns to Geoff at the end of the season (because those units did not sell). Because styles change each year, there is essentially no value in the returned merchandise. Option 2: Geoff offers a price of $58 for each unit, but returns are no longer accepted. In this case, Land's Start throws out unsold units at the end of the season. This season's demand for this model will be normally distributed with a mean of 225 and a standard deviation of 100. Land's Start will sell those sunglasses for $96 each. Geoff's unit production cost is $21. If a part of the question specifies whether to use Table 13.4, or to use Excel, then credit for a correct answer will depend on using the specified method. (Round your answer up to a whole number.) How much would Land's Start buy if it chose option 1? Use Table 13.4 and round- up rule. a. (Round your answer up to a whole number.) b. How much would Land's Start buy if it chose option 2? Use Table 13.4 and round- up rule. (Use your rounded order quantities from Parts a & b. Round your answer to 2 decimal places.) C. Use Table 13.4. Which option will Land's Start choose? Complete the table on the right: Option 1 Option 2 Expected Inventory Expected sales Expected profit (Round your answer up to a whole number.) Suppose Land's Start chooses option 1 and orders 325 units. What is Geoff d. Gullo's expected profit? Use Table 13.4 and the round-up rule. Do not round intermediate calculations. TABLE 13.4 The Distribution, Fl), and Expected Inventory. (O), Functions for the Standard Normal Distribution Function Fiz) (2) -4.0 .0000 .0000 -3.9 .0000 .0000 -3.8 0001 .0000 -3.7 .0001 .0000 -3.6 .0002 .0000 -3.5 .0002 .0001 -3.4 .0003 0001 -33 .0005 .0001 -3.2 .0007 .0002 -3.1 .0010 .0003 -3.0 .0013 .0004 -29 0019 .0005 -2.8 .0026 .0008 -2.7 .0035 .0011 -26 .0047 .0015 -2.5 .0062 0020 -2.4 0082 0027 -23 0107 .0037 -22 0139 .0049 -2.1 .0179 .0065 -2.0 0228 0085 -1.9 .0287 .0111 -1.8 0359 0143 -17 0446 0183 -16 0548 0232 -1.5 .0668 0293 -14 0808 .0367 -13 .0968 0455 -1.2 1151 0561 -11 1357 0686 -1.0 1587 .0833 -09 181 1004 -08 29 -07 2420 1-24 -06 27-3 FB) -05 3085 978 -04 2345 2304 -03 3521 2568 -02 4207 1069 -01 J602 25069 0 SOMO 1989 1 5398 4509 593 5069 3 5668 655 60- 695 6978 25 159) 8429 8 788 9202 8159 1000- 10 1843 10833 11 45 F106 12 3849 1266 13 9012 13455 14 992 367 15 19332 15293 16 945 15:12 17 9554 TM3 18 964 18143 19 9713 19 20 9772 20085 21 982 21065 22 9861 22049 23 9893 23037 24 19691 24027 25 9691M 200 26 9953 2015 2.7 9965 270H 28 9974 2 04 29 29005 30 99%) 3000 3.1 9990 23 1000 32 999 32002 3) 999 ( 3001 14 9997 34001 35 1999 3.5001 36 9998 36000 37 9999 37000 19999 38000 39 10000 39000 4.0 10000 0000 Geoff Gullo owns a small firm that manufactures "Gullo Sunglasses". He has the opportunity to sell a particular seasonal model to Land's Start, a catalog retailer. Geoff offers Land's Start two purchasing options. Use Table 13.4. Option 1: Geoff offers to set his price at $68 and agrees to credit Land's Start $55 for each unit Land's Start returns to Geoff at the end of the season (because those units did not sell). Because styles change each year, there is essentially no value in the returned merchandise. Option 2: Geoff offers a price of $58 for each unit, but returns are no longer accepted. In this case, Land's Start throws out unsold units at the end of the season. This season's demand for this model will be normally distributed with a mean of 225 and a standard deviation of 100. Land's Start will sell those sunglasses for $96 each. Geoff's unit production cost is $21. If a part of the question specifies whether to use Table 13.4, or to use Excel, then credit for a correct answer will depend on using the specified method. (Round your answer up to a whole number.) How much would Land's Start buy if it chose option 1? Use Table 13.4 and round- up rule. a. (Round your answer up to a whole number.) b. How much would Land's Start buy if it chose option 2? Use Table 13.4 and round- up rule. (Use your rounded order quantities from Parts a & b. Round your answer to 2 decimal places.) C. Use Table 13.4. Which option will Land's Start choose? Complete the table on the right: Option 1 Option 2 Expected Inventory Expected sales Expected profit (Round your answer up to a whole number.) Suppose Land's Start chooses option 1 and orders 325 units. What is Geoff d. Gullo's expected profit? Use Table 13.4 and the round-up rule. Do not round intermediate calculations. TABLE 13.4 The Distribution, Fl), and Expected Inventory. (O), Functions for the Standard Normal Distribution Function Fiz) (2) -4.0 .0000 .0000 -3.9 .0000 .0000 -3.8 0001 .0000 -3.7 .0001 .0000 -3.6 .0002 .0000 -3.5 .0002 .0001 -3.4 .0003 0001 -33 .0005 .0001 -3.2 .0007 .0002 -3.1 .0010 .0003 -3.0 .0013 .0004 -29 0019 .0005 -2.8 .0026 .0008 -2.7 .0035 .0011 -26 .0047 .0015 -2.5 .0062 0020 -2.4 0082 0027 -23 0107 .0037 -22 0139 .0049 -2.1 .0179 .0065 -2.0 0228 0085 -1.9 .0287 .0111 -1.8 0359 0143 -17 0446 0183 -16 0548 0232 -1.5 .0668 0293 -14 0808 .0367 -13 .0968 0455 -1.2 1151 0561 -11 1357 0686 -1.0 1587 .0833 -09 181 1004 -08 29 -07 2420 1-24 -06 27-3 FB) -05 3085 978 -04 2345 2304 -03 3521 2568 -02 4207 1069 -01 J602 25069 0 SOMO 1989 1 5398 4509 593 5069 3 5668 655 60- 695 6978 25 159) 8429 8 788 9202 8159 1000- 10 1843 10833 11 45 F106 12 3849 1266 13 9012 13455 14 992 367 15 19332 15293 16 945 15:12 17 9554 TM3 18 964 18143 19 9713 19 20 9772 20085 21 982 21065 22 9861 22049 23 9893 23037 24 19691 24027 25 9691M 200 26 9953 2015 2.7 9965 270H 28 9974 2 04 29 29005 30 99%) 3000 3.1 9990 23 1000 32 999 32002 3) 999 ( 3001 14 9997 34001 35 1999 3.5001 36 9998 36000 37 9999 37000 19999 38000 39 10000 39000 4.0 10000 0000