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Mac wishes to determine the number of copies of The Computer Journal he should purchase each Sunday. A study of the historical data showed that the demand is approximately normally distributed with mean = 11.73 and standard deviation = 4.74. Mac purchases the magazines for 25 cents and can sell them for 75 cents. He can salvage unsold copies for 10 cents.
a) Calculate the overage cost.
b) Calculate the underage cost.
c) How many copies of the Journal should Mac purchase?
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