Question 1. At what order quantity is the maximum profit expected to occur with the given probabilities for demand? Answer: Question 2. For a demand of 2000, what order quantity will result in a breakeven profit? What will happen to the profit if more than this quantity is ordered? Hint: Use goal seek. Answer: Question 3. For what order quantity does the maximum profit occur when the probabilities for the possible demand values are all equal? Answer: Ordering with Quantity Discounts Barnes and Noble, with many locations across the United States, places orders for all of the latest books and then distributes them to its individual bookstores. The store needs a model to help it order the appropriate number of any title. For example, it plans to order a popular new hardback novel, which it will sell for $30. It can purchase any number of this book from the publisher, but due to quantity discounts, the unit cost for all books it order depends on the number ordered. If the number ordered is less than 1000, then the unit cost is $24. After each 1000, the unit cost (cost per book) drops to: $23 for at least 1000 coples; \$22.25 for at least 2000 copies; $21.75 for at least 3000 copies; and $21.30 for at least 4000 copies. For example, if 5am's order 2500 books, its total cost is 2500$22.25=$55,625. Barnes and Noble is uncertain about the demand for this book. It estimates that demand could be anywhere from 500 to 4500 . Also, as with most hardback novels, this one will eventually come out in paperback. Therefore, if the store has any hardbacks left when the paperback comes out, it will put them on sale for $10, a price at which it believes all the leftovers will be sold. How many copies of this hardback should Barnes and Noble's order from the publisher