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The buyer for Needless Markup, a famous high end department store, must decide on the quantity of a high-priced women's handbag to procure in ltaly

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The buyer for Needless Markup, a famous "high end" department store, must decide on the quantity of a high-priced women's handbag to procure in ltaly for the following Christmas season. The unit cost of the handbag to the store is $28.50 and the handbag will sell for $150.00. Any handbags not sold by the end of the season are purchased by a discount firm for $20.00. In addition, the store accountants estimate that there is a cost of $0.40 for each dollar tied up in inventory, as this dollar invested elsewhere could have yielded a gross profit. Assume that this cost is attached to unsold bags only. Suppose that the sales of the bags are is normally distributed with mean 150 bags with a standard deviation 25. Based on this, how many bags should the buyer purchase? a. 178 b. 176 c. 177 d. 185

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