The purchase of established firms abroad with the goal of using the existing production, marketing, and distribution networks an
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Answer:
128 pounds
Explanation:
Cost of buying of Louisiana oysters = $4 per pound
Cost of selling of Louisiana oysters = $8 per pound
selling cost of oysters not sold = $2
Mean = 120 pounds
Standard deviation, s = 18 pounds
Thus,
Cost of actual Utilization (Co) = $8 - $4 = $4
Cost of Under utilization (Cu) = $4 - $2 = $2
Now,
Probability of sale =
=
= 0.67
also,
z score at above probability (0.67) = 0.44 [from standard z-table]
hence,
Cynthia should order = mean + z × s
= 120 + 0.44 × 18
= 120 + 7.92
= 127.92 ≈ 128 pounds