How many trees should be cut to maximize the profit

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The Evergreen Company owns acreage of shrub trees to be harvested and sold each spring. The company estimates the costs of cutting and trimming the trees to be $2.50 per tree. The average cost of shipping the trees to the retailer is about $0.50 per tree, and the company receives about $5.00 per tree ordered by the retailer. However, if the trees are cut and not sold to the retailer they are a total loss. Shipping costs are not incurred if trees are not sold. The historical demand distribution is normal with mean 24,000 and standard deviation 1500. How many trees should be cut to maximize the profit?

Reference no: EM131278796

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