Every four years Blockbuster publishers revisits its textboo

Every four years, Blockbuster publishers revisits its textbooks. It has been three years since the best-selling book, “The Joy of Supply Chain Management” has been revised. At present, 2,000 copies of the book are in stock, and Blockbuster must determine how many copies of the book should be printed for the next year. The sales department believes that the sales during 1 the next are are governed by the following discrete distribution: 5,000 copies with 30%, 6,000 copies with 20%, 7,000 copies with 40% and 8,000 copies with 10% can be sold. Each copy for the book sold during the net year brings the publisher $35 in revenues. Any copies left ant the end of the next year cannot be sold at full price but can be sold for $5 to Bonds Ennoble and Gitano’s bookstore. The cost of printing of the book is $50,000 plus $15 per book printed.

How many copies of the book should be printed?

Would the answer change if 4,000 copies were currently in stock?

Solution