Green Thumb, a manufacturer of lawn care equipment, has introduced a new product. Each unit costs $150 to manufacture, and the introductory sales price is to be $300. Any unsold units at the end of the season are going to be stored in a warehouse and will be disposed of in a fire sale for $75 each. It costs $20 to hold a unit in the warehouse until the fire season. Q)Perform the marginal contribution analysis on the worksheet named below. Compute the expected marginal contribution of 20 additional units at the optimal production level. Note that all dollar amounts are given per unit and Green Thumb manufactures in multiples of 20 units

Inputs Unit cost, Unit sale price, p Disposal value Holding cost, H Salvage value, v Optimal Service Level Marginal benefit, MB Marginal cost, MC Optimal service level, SL* Probability of Demand being greater than R Service Level Expected Marginal Benefit Expected Marginal Cost Expected Marginal Contribution Marginal Contribution Analysis Order Size Demand Probability of Probability of Demand (0) (D) Demand being Ror less 20 20 2.3% 40 40 4.6% 60 60 9.1% 80 80 15.0% 100 100 18.1% 120 120 20.4% 140 140 14.9% 160 160 9.5% 180 180 4.4% 200 200 1.7% Inputs Unit cost, Unit sale price, p Disposal value Holding cost, H Salvage value, v Optimal Service Level Marginal benefit, MB Marginal cost, MC Optimal service level, SL* Probability of Demand being greater than R Service Level Expected Marginal Benefit Expected Marginal Cost Expected Marginal Contribution Marginal Contribution Analysis Order Size Demand Probability of Probability of Demand (0) (D) Demand being Ror less 20 20 2.3% 40 40 4.6% 60 60 9.1% 80 80 15.0% 100 100 18.1% 120 120 20.4% 140 140 14.9% 160 160 9.5% 180 180 4.4% 200 200 1.7%