Problem 3 Irwin, one of Danis Supply's vendors, makes the soft replacement pad sets for bar clamps. Irwin sells about 100,000 pad sets in a year or 3,846 boxes biweekly. Each pad sets is sold for $15 and costs $10 in materials to produce. The company has determined that when the out-of-stock percentage increases by one percent, their sales drops by 0.02 percent. The other expenses associated with stocking the item is estimated to be $4. Stock replenishment is every two weeks, and the demand during that time is assumed to be normally distributed with a standard deviation of 500 sets. 7. What is the marginal revenue? 8. What is the marginal cost? 9. What is the optimal service level? 10. What is optimal profit