commonly used in mainland China for speeding up COVID-19 symptoms recovery. A drug store in Hong Kong wants to buy the LH capsules from a drug manufacturer in North China's Hebei Province and sells the product to customers in Hong Kong. This is a two-stage make-to-order (MTO) supply chain with the following information. Two stages - Buyer: Hong Kong drug store is a retailer who faces customer demand - Seller: Chinese drug manufacturer produces and sells the LH capsules to the Hong Kong drug store Retailer information - Sale price of LH capsules is \$120 per pack. - Wholesale price paid by retailer to manufacturer is $55 per pack. - Purchase lot size is 500 packs. - Salvage value is $0 (unsold LH capsules cannot be resold to third parties). Manufacturer information - Fixed production cost is $5,000. - Variable production cost is $20 per packs. - Production lot size is 500 packs. - Salvage value is $0 (unsold LH capsules cannot be resold to third parties). The drug store has forecasted product demand (see the table below). The drug store has determined the expected profits for different order quantities (see the table below). Show the units and steps of calculation when you answer the following questions. A. Determine the Hong Kong drug store's expected profit if the order quantity is 3,000 packs and determine the optimal order quantity that will maximize the drug store's profit. B. If the Hong Kong drug store adopts the optimal order quantity of Q3A, determine the drug manufacturer's profit. To encourage the Hong Kong drug store to place a larger order, the Chinese drug manufacturer plans to offer the drug store a BUY-BACK contract in which the manufacturer buys unsold LH capsules from the drug store at $10 per pack. For the manufacturer, the wholesale price, fixed and variable production costs remain unchanged. The drug store has determined the expected profits with this buy-back contract for different order quantities (see the table below). C. Based on the buy-back contract, determine the drug store's expected profit if the order quantity is 3,000 packs, and determine the optimal order quantity that will maximize the drug store's profit. D. If the drug store adopts the optimal order quantity of Q3C, determine the manufacturer's expected profit