Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

VI Opus Videos and several movie studios have decided to sign a revenue sharing contract for DVDS . Each DVD costs the studio $3 to

image text in transcribed
VI Opus Videos and several movie studios have decided to sign a revenue sharing contract for DVDS . Each DVD costs the studio $3 to produce . The DVD will be sold to Opus for $5 . Opus Studios prices the DV DS at $ 18 and forecasts demand to be normally distributed with a mean of 6 000 and a standard deviation of 2 500 . Any unsold DVDS are discounted to $1 50 , and all discounted DVDs will sell at that price . Opus Videos will share 30% of the revenues with the studio , keeping 70% for itself a . How many DVDS should opus Video order b . How many DVDS does Opus Video expect to sell at a discount C . What is the expected profit for Opus Videos ? d . What is the expected profit for the studio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Numerical Analysis

Authors: Richard L. Burden, J. Douglas Faires

9th edition

538733519, 978-1133169338, 1133169333, 978-0538733519

More Books

Students also viewed these Mathematics questions

Question

=+What is the lowest Herfindahl index that industry could have?

Answered: 1 week ago