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Reality Show 10Fight10 is trying to decide how many 10Fight10 boxing trunks to order for the upcoming season2. The boxing trunks are sold for $55,

Reality Show 10Fight10 is trying to decide how many 10Fight10 boxing trunks to order for the upcoming season2. The boxing trunks are sold for $55, and 10Fight10 believes that the demand at this price is normally distributed with a mean of 200 and standard deviation of 40. If 10Fight10 orders 200 boxing trunks, the cost is $28 per boxing trunks. Every increment of 50 boxing trunks reduces the unit cost of boxing trunks by $1.25. For example, if the order quantity is from 250 to 299 boxing trunks, the unit cost per pair is $26.75. After the season2, the boxing trunks will be marked down to a discounted-price of $20 per pair. Historically, demand for discounted-price items has followed a normal distribution with mean equal to half the actual full-price demand and standard deviation equal to 20% of the mean demand at the discounted-price. For example, the For the full-price demand of 200, discounted-price demand would normally distribute with the mean of 0.5*200=100 and the standard deviation of 0.2*(100)=20. How many boxing trunks should Reality Show 10Fight10 order to maximize the expected profit? You can assume that any unsold boxing trunks at the marked-down price has no value.

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