Bower Sports

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 Bower is an outdoor clothing accessories chain that produces a line of hats for $10 from its Asian supplier, Bower Sports. Unfortunately at the time of order placement, demand is uncertain. Bower forecasts that its demand is normally distributed with a mean of 2,100 and standard deviation of 1,200. The hats are sold for $22. Unsold hats have little salvage value: Bower simply donates them to charity.

a) What order quantity, Q, maximizes Bower’s expected profit?

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