Unsold cards have no salvage value

Assignment Help Operation Management

Reference no: EM13781498

Wholemark is an internet order business that sells one popular New Year greeting card once a year. The cost of the paper on which the card is printed is $0.05 per card, and the cost of printing is $0.15 per card. The company receives $2.15 per card sold. Since the cards have the current year printed on them, unsold cards have no salvage value. Their customers are from the four areas: Los Angeles, Santa Monica, Hollywood and Pasadena. Based on past data, the number of customers from each of the four regions is normally distributed with mean 2,000 and standard deviation 500. (Assume these four are independent.) What is the optimal production quantity for the card?

Reference no: EM13781498

Questions Cloud

Behavioral consequences of strategic management issues : When managers consider the general availability of credit, the level of disposable income, and the propensity of people to spend, they are considering what factors?

Social implications of medical issues : To complete this assignment, read through the scenario below and address the specific questions and issues indicated. Review the "Introduction to the Miller Family" document for specific information on each member of the family.

Creating an effective performance measurement system : Describe the important steps in creating an effective performance measurement system :

What distinctives should a christian business espouse : What distinctives should a Christian business espouse when considering outsourcing manufacturing and product development? How could a Christian business use outsourcing to help support poor nations and economies, global missions and evangelism

Unsold cards have no salvage value : Wholemark is an internet order business that sells one popular New Year greeting card once a year. The cost of the paper on which the card is printed is $0.05 per card, and the cost of printing is $0.15 per card. The company receives $2.15 per card s..

Have you thought about your audiences expectations : Planning an argument requires writers to consider how their audiences are persuaded. Have you thought about your audience's expectations?

Statistical literacy and critical thinking : Does that indicate that changes in the concentration of carbon dioxide cause changes in the global temperature? Why or why not?

Defines the concept of push channel strategy : Write a brief paragraph (in your own words) that defines the concept of both the "push channel strategy" and the "pull channel strategy

Information system are transforming business : What is information systems literacy? How does it differ from computer literacy?

User Account

All Pages