Lemington’s is trying to determine how many Jean Hudson dresses to order for the spring season. Demand for the dresses is assumed to follow a normal distribution with mean 400 and standard deviation...

Lemington’s is trying to determine how many Jean Hudson dresses to order for the spring season. Demand for the dresses is assumed to follow a normal distribution with mean 400 and standard deviation 100. The contract between Jean Hudson and Lemington’s works as follows. At the beginning of the season, Lemington’s reserves x units of capacity. Lemington’s must take delivery for at least 0.8x dresses and can, if desired, take delivery on up to x dresses. Each dress sells for $160, and Jean charges $50 per dress. If Lemington’s does not take delivery on all x dresses, it owes Jean a $5 penalty for each unit of reserved capacity that was unused. For example, if Lemington’s orders 450 dresses, and demand is for 400 dresses, then Lemington’s will receive 400 dresses and owe Jean 400($50) + 50($5). How many units of capacity should Lemington’s reserve to maximize its expected profit?