Ch 7.b Quesion 4 for Save & Exit Submt 4000 points Problem 7-27 13-2018 Sat You
ID: 411416 • Letter: C
Question
Ch 7.b Quesion 4 for Save & Exit Submt 4000 points Problem 7-27 13-2018 Sat You are the buyer for your university bookstore One of the textbooks has a cost to you or $155 and you t to students for $310 In this case, however, you cannot salvage any value trom copies that do not se because a new edtion is published every semester Demand for this text averages 135 copies each semester, with a standard deviabon of 21 copies Use Appendi A How many should you order each semester? (Round your intermediate caleulations to 2 decimal place and tinal answer to the nearest whole number Worksheet 2 Medu lab shitExplanation / Answer
Purchase price = 155
Selling price = 310
Salvage price =0
MP = selling price - purchase price = 310-155 =155
ML = Purchase price - salvage price = 155-0 = 155
Books should be ordered such that P => ML / MP+ML = 155/310 = 0.5
Since the value P=0.5 corresponds to z=0, we have
Quantity to be ordered Q = mu +z x sigma
Q = 135+0x21 = 135