Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Green Thumb, a manufacturer of lawn care equipment, has introduced a new product. Each unit costs $180 to manufacture, and the introductory price is $250.

Green Thumb, a manufacturer of lawn care equipment, has introduced a new product. Each unit costs $180 to manufacture, and the introductory price is $250. At this price, the anticipated demand is normally distributed, with a mean of 300 and a standard deviation of 60. Any unsold units at the end of the season are unlikely to be valuable and will be disposed of in a post-season sale for $50 each.

1.how many units should Green Thumb manufacture for sale?

2.What is the expected profit from this policy?

3.On average, how many customers does Green Thumb expect to turn away because of stocking out?

Please save your answers in Exc

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operations management

Authors: Jay Heizer, Barry Render

10th edition

978-0136119418, 136119417, 978-0132163927

More Books

Students also viewed these General Management questions

Question

=+What were the total assets held by the banks that failed?

Answered: 1 week ago