Question
In: Operations Management
Crestview sells a particularly popular Christmas card once a year and distributes the cards to gift...
Crestview sells a particularly popular Christmas card once a year and distributes the cards to gift shops. It costs Crestview $0.5 per card to order from a printing company, and Crestview receives $1.0 for each card sold. The printing company costs $0.30 to print each card. Because the cards have the current year printed on them, those cards that are not sold are discarded at no value. Crestview has estimated that the demand for the coming Christmas season follows a normal distribution with a mean of 200,000 and standard deviation of 50,000.
A. Determine the optimal number of cards Crestview should order for the coming Christmas season.
B. Suppose Crestview has purchased a printing machine and will print cards themselves. The cost to print each card is still $0.30. Determine the optimal number of cards Crestview should print for the coming Christmas season.
C. Interpret the difference between the results in a) and b).
Solutions
keosha answered 7 months agoRelated Solutions
1. Crestview sells a particularly popular Christmas card once a year and distributes the cards to...
1. Crestview
sells a particularly popular Christmas card once a year and
distributes the cards to gift shops. It costs Crestview $1 per card
to order from a printing company, and Crestview receives $2 for
each card sold. Each card that is not sold is discarded, and
Crestview receives $0.1 for each.
Crestview has estimated that the demand for the coming Christmas
season follows a normal distribution with a mean of 100,000 and
standard deviation of 30,000.
a)
Determine the...
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sales recorded at the time of redemption. What entry, if any,
should the company record on October 1, 2022?
A) Debit Sales Revenue, $50; credit Cash, $50. B) Debit Cash,
$750; credit Sales Revenue, $750. C) Debit Deferred Revenue, $50;
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Suppose the number of Christmas cards is normally distributed with
a standard deviation of 6. Let X be the number of Christmas cards
received by a randomly selected American. Round all answers to 4
decimal places where possible.
a. What is the distribution of X? X ~ N(,)
b. If an American is randomly chosen, find the probability that
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CircuitTown commenced a gift card program in January 2018 and sold $13,900 of gift cards in...
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sold $13,900 of gift cards in January, $18,700 in February, and
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Required:
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CircuitTown commenced a gift card program in January 2021 and sold $11,900 of gift cards in...
CircuitTown commenced a gift card program in January 2021 and
sold $11,900 of gift cards in January, $19,450 in February, and
$20,850 in March 2021 before discontinuing further gift card sales.
During 2021, gift card redemptions were $8,100 for the January gift
cards sold, $4,600 for the February cards, and $6,100 for the March
cards. CircuitTown considers gift cards to be “broken” (not
redeemable) 10 months after sale.
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CircuitTown commenced a gift card program in January 2018 and sold $10,000 of gift cards in...
CircuitTown commenced a gift card program in January 2018 and
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$16,000 in March of 2018 before discontinuing further gift card
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“broken” (not redeemable) 10 months after sale.
Required:
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