Crestview sells a particularly popular Christmas card once ayear and distributes the cards to gift shops. It costs Crestview$0.5 per card to order from a printing company, and Crestviewreceives $1.0 for each card sold. The printing company costs $0.30to print each card. Because the cards have the current year printedon them, those cards that are not sold are discarded at no value.Crestview has estimated that the demand for the coming Christmasseason follows a normal distribution with a mean of 200,000 andstandard deviation of 50,000.
A. Determine the optimal number of cards Crestview should orderfor the coming Christmas season.
B. Suppose Crestview has purchased a printing machine and willprint cards themselves. The cost to print each card is still $0.30.Determine the optimal number of cards Crestview should print forthe coming Christmas season.
C. Interpret the difference between the results in a) andb).
