You own a chain of stores in the south-east US which sell low-margin, novelty products. These products tend to sell for a certain period of time (a "season") and then the demand disappears. The product needs to be ordered well ahead of the season, as they are low margin products, and you need to get the cheapest production option. One of your new products for the summer season is an inflatable swim ring shaped like a dragon. The swim dragon has a demand that is normally distributed with an expected mean demand for the season of 500 and a standard deviation of 60. The swim dragon sells for $22, the cost of the swim dragon is $8, and the salvage is $2. You would like to improve your system and are willing to look for suppliers which can deliver the same swim dragon with a short lead time to meet urgent demand within the season (reactive capacity). You find a supplier who charges a higher price, c2 = $12 per swim dragon, but who can make one extra delivery during the season. For the following questions, please use the Normal Tables with the z value given to two decimal places