Response to the following problem:
Masks-R-Us sells Halloween masks at a kiosk in the local mall. The store is open only during the month of October. Masks are imported from Asia and cost the store $3.45 each; they retail for $9.95 each. Any masks left in inventory after Halloween are sold to a merchandise closeout specialist at a price of $1.80 each. Masks-R-Us estimates that if it runs out of Halloween masks, it will suffer a customer goodwill loss of $15. The company further estimates the cost of rent, utilities, labor, insurance, and so on, to operate the kiosk is approximately $4000 for the month. Based on past sales, Masks-R-Us estimates that demand for its masks during the month of October will be approximately normally distributed with a mean of 900 masks and a standard deviation of 100 masks. Because the masks are imported from Asia, Masks-R-Us must place its order with the mask manufacturer in May.
Determine the number of masks Masks-R-Us should order and the expected profit or loss it can expect to earn if it follows this policy.