Sells electrical and electronic components through catalogs

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Reference no: EM132301660

Johnson Electronics sells electrical and electronic components through catalogs. Catalogs are updated and printed twice every year. Each printing run incurs a fixed cost of $5,000, which involves catalog design cost and printing setup cost. The variable production cost is $5 per catalog. The half-year demand for catalogs is estimated to be normally distributed with a mean of 8,000 and standard deviation of 3,000. Data indicate that, on average, each customer ordering a catalog generates a profit of $35 from sales. How many catalogs should be printed in each run?

Reference no: EM132301660

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