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Problem 2 (16 points): Suppose that a retailer sells a product at $90 per unit while a supplier builds it at the cost of $30
Problem 2 (16 points): Suppose that a retailer sells a product at $90 per unit while a supplier builds it at the cost of $30 per unit. The two parties sign a sellback contract to maximize the total supply chain profit. They agree that the retailer gets 45% of the expected profit and the supplier gets the rest. Determine the price per unit at which the item is sold to the retailer and the price per unit at which the item is sold back to the supplier
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