12. (20 Points) You must show your detailed work to get credit in this question via Excel Model development. The solution must be submitted as EXCEL XLSX file to get any credit. Handi Inc., a cell phone manufacturer, procures a standard display from LCD Inc. via an options supply contract. At the start of quarter 1 (Q1) Handi pays LCD $20 per option. At that time Handis forecast of demand in quarter 2 (Q2) is normally distributed with mean 30,000 and standard deviation 10,000. At the start of Q2 Handi learns exact demand for Q2 and then exercises options at the fee of $50 per option (for every exercised option LCD delivers one display to Handi). Assume Handi starts Q2 with no display inventory and displays owned at the end of Q2 are worthless. Should Handis demand in Q2 be larger than the number of options held, Handi purchases additional displays on the spot market for $150 per unit. a. How many options should Handi purchase from LCD, Inc. at the start of Q1? (i.e. the optimum options). Assess/computer only what co and cu are. b. Suppose Handi purchases 45,000 options; what is the expected number of displays Handi will buy on the spot market? c. Suppose Handi purchases 45,000 options; what is the expected number of displays Handi will exercise? d. Compute Expected Total Procurement Cost with 45,000 options.