Teddy bower is an outdoor clothing and accessories chain that purchases a line of parkas at $10 each from its asian supplier, teddysports. Unfortunately, at the time of the order placement, demand is still uncertain: teddy bower forecasts that its demand is normally distributed with a mean of 2100 and a standard deviation of 1200. Teddy bower sells these parkas at $22 each. Unsold parkas have little salvage value; teddy bower simply gives them away to a charity (and also doesn’t collect a tax benefit for the donation).