You have been asked to determine the probability that the contribution margin for a particular product line exceeds the fixed cost of

$430.

The total number of units sold is a normally distributed random variable with a mean of

300

and a variance of

400

X ~

N(300,

400).

The selling price per unit is

$9.

The total number of units produced is a normally distributed random variable with a mean of

500

and a variance of

2500

Y ~

N(500,

2500).

The variable production cost is

$4

per unit. Production and sales have a positive correlation of

0.50.