Q. Lake Grove Confectionaries (LGC) sells chocolates for the holiday season in specially designed boxes. The firm sells

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Q. Lake Grove Confectionaries (LGC) sells
chocolates for the holiday season in specially designed boxes. The
firm sells four designs, and currently all packaging is done in the
plant as chocolates are manufactured. All manufacturing and
packaging for the holiday season are completed before the start of
the season. The demand forecast for each of the four designs is
normally distributed, with a mean of 20,000 and a standard
deviation of 8,000. Each box costs $10 and is sold for $20. Any
unsold boxes at the end of the season are discounted to $8, and
they all sell out at this price. The cost of holding a box in
inventory for the entire season before selling it at a discount is
$1.