Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A distributor is negotiating a supply contract for one of its item. The end-customer demand is forecasted as follows: Quantity Probability 20,000 0.2 30,000 0.4
A distributor is negotiating a supply contract for one of its item. The end-customer demand is forecasted as follows: Quantity Probability 20,000 0.2 30,000 0.4 45,000 0.35 60,000 0.05 The current parameters are as follows: $100/unit Price charged by distributor to end-customer Price charged by supplier to distributor Salvage value Fixed manufacturing cost Variable manufacturing cost $70/unit $30/unit 0 $45/unit Assume Q = 60,000 and the expected number of sold items is 38,000. What is the profit for the supplier
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started