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(With any calculations, please use at least four significant figures.) Random Things Magazine Narms and Baubles Random Things Magazine sells its magazines through Narms and
(With any calculations, please use at least four significant figures.) Random Things Magazine Narms and Baubles Random Things Magazine sells its magazines through Narms and Baubles bookstores. It costs Random Things Magazine $0.50 to print each magazine; it sells the magazines to Narms and Baubles for $2.00. Narms and Baubles then sells the magazines at retail for $5.00. Whatever doesn't sell gets thrown away. Demand for the magazine each week is normal with a mean of 6,742 and a standard deviation of 2,683. To give Narms and Baubles incentive to order more magazines, it proposes a revenue-sharing contract. Instead of selling the magazines to Narms and Baubles for $2.00, Random Things Magazine will sell its magazines to Narms and Baubles for only $0.60. However, for each magazine that Narms and Baubles sells at retail, Narms and Baubles must give $1.00 back to Random Things Magazine. With this revenue sharing agreement in place, what is the optimal order amount that will maximize Narms and Baubles' expected profit? (With any calculations, please use at least four significant figures.) Random Things Magazine Narms and Baubles Random Things Magazine sells its magazines through Narms and Baubles bookstores. It costs Random Things Magazine $0.50 to print each magazine; it sells the magazines to Narms and Baubles for $2.00. Narms and Baubles then sells the magazines at retail for $5.00. Whatever doesn't sell gets thrown away. Demand for the magazine each week is normal with a mean of 6,742 and a standard deviation of 2,683. To give Narms and Baubles incentive to order more magazines, it proposes a revenue-sharing contract. Instead of selling the magazines to Narms and Baubles for $2.00, Random Things Magazine will sell its magazines to Narms and Baubles for only $0.60. However, for each magazine that Narms and Baubles sells at retail, Narms and Baubles must give $1.00 back to Random Things Magazine. With this revenue sharing agreement in place, what is the optimal order amount that will maximize Narms and Baubles' expected profit
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