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SnowTime produces a seasonal snow jack at a production cost of $80 per unit, and it is sold to a retailer, Mazy Clothing, at a
SnowTime produces a seasonal snow jack at a production cost of $80 per unit, and it is sold to a retailer, Mazy Clothing, at a wholesale price $125. The product has a salvage value of $20 for SnowTime if it is unsold after the season. Mazy sells the product at $160 per unit and sells the leftover products through a secondary channel for $60 per unit.
- What is the buyback price that leads to supply chain coordination?
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