How many units should the company produce

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Reference no: EM131115744

Consider the same company selling winter ski sleds as in your notes book. Demand follows a normal distribution with a mean of 100,000 units and a standard deviation of 15,000 units. The variable cost of production is $15 per unit and the sale price is $45. To get rid of the leftover inventory faster and vacate the warehouse, the company decides to adopt a technology to dispose of the leftover inventory. With this new technology, it costs $5 to dispose of one unit. How many units should the company produce?

Reference no: EM131115744

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