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Speedy Business Cards, Inc., supplies customized business cards to commercial and individual customers. The company is preparing a bid to supply cards to the Nationwide Realty Company, a large association of independent real estate agents. Because paper, ink, and other costs cannot be determined precisely, Speedy anticipates that costs will be normally distributed around a mean of $20 per unit (each 500-card order) with a standard deviation of $2 per unit.
A. What is the probability that Speedy will make a profit at a price of $20 per unit?
B. Calculate the unit price necessary to give Speedy a 95% chance of making a profit on the order.
C. If Speedy submits a successful bid of $23 per unit, what is the probability that it will make a profit?
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