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Suppose the annual demand is normally distributed with mean 5 0 , 0 0 0 units and standard deviation of 1 , 0 0 0

Suppose the annual demand is normally distributed with mean 50,000 units and standard deviation of 1,000 units. The company receives an average profit margin of $20 per unit. To account for loss of goodwill, lets assume that a lost sale has a penalty cost of $10. What is the optimal capacity that a manufacturing company should have for this product if a marginal unit of capacity costs $10? Assume that the capacity is going to be used for ever.
Group of answer choices
50,670
50,440
49,560
50,840

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