$($Q$3)$ Newsvendor problem version $2$

Suppose that the publisher of the SCMP decides to change its policy, allowing

Jason to return any unsold newspapers to the publisher at a return price of $$4$ per

copy.

A$.$ Should the return price of $$4$ lead to Jason ordering more or fewer

newspapers? Why? $($You should answer this question before solving for the

optimal order quantity below.$)$

B$.$ What is the underage cost, overage cost and critical fractile for the

newsvendor problem faced by Jason?

C$.$ What is the optimal order quantity $q^{**}?$

D$.$ If Jason were to order $q^{**}$ newspapers, what is the probability of a stockout?