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The Fitness Shop is considering ordering a special model exercise machine. Each unit will cost the shop $425 and it will sell for $750. Any units not sold at the regular price will be sold at the yearend model clearance for $360.
a. Assume that demand follows a normal probability distribution with μ = 200 and σ =35. What is the recommended order quantity?
b. Assume that demand is uniformly distributed between 100 and 300. What is the recommended order quantity?
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