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In a newsvendor system, if the salvage value of a product increases but all other parameters (e.g., sales price, unit purchasing cost) stay the same:

In a newsvendor system, if the salvage value of a product increases but all other parameters (e.g., sales price, unit purchasing cost) stay the same: a. Would the overage cost, Co, decrease or increase? Provide your answer with a justification. b. Would the underage cost, Cu, decrease or increase? Provide your answer with a justification. c. Would the optimal order quantity decrease or increase? Provide your answer with a justification.

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