Business

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4 May, 05:35

A movie studio sells the latest movie on DVD to VideosRUs at $10 per DVD. The studio's cost of production is $1 per DVD. VideosRUs prices the videos at $19.99 to its customers. The studio offers to buy back unsold DVDs for $5. The studio must pay $.50 disposal fee for all returned DVDs. How many videos should VideosRUs order if the current sales forecast for the DVD is that demand will be normal with a mean of 10,000 and a standard deviation of 5,000

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