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Jenkins Appliances produces microwave ovens. Jenkins has computed its breakeven level of sales to be 60,000 units. An analysis of the market has led Jenkins to expect sales of 75,000 units with a standard deviation of 10,000 units. Assume that sales are normally distributed.
a. What is the probability that Jenkins will incur operating losses?
b. What is the probability that Jenkins will operate above its breakeven point?
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