Rodgers Electronics and their suppliers have decided to sign a revenue-sharing contract for phone chargers. Each phone
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Rodgers Electronics and their suppliers have decided to sign a revenue-sharing contract for phone chargers. Each phone charger costs the supplier €3 to produce. The phone charger will be sold to Rodgers Electronics for €5. Rodgers Electronics, in turn, prices a phone charger at €20 and forecasts demand to be normally distributed, with a mean of 8,000 and a standard deviation of 2,500. Any unsold phone chargers are discounted to €2, and all sell at this price. Rodgers Electronics will share 30 percent of the revenue with the supplier, keeping 70 percent for itself.
a. How many phone chargers should Rodgers Electronics order?
b. How many phone chargers does Rodgers Electronics expect to sell at a discount?
c. What is the profit that Rodgers Electronics expects to make?
d. What is the profit that the supplier expects to make?
a. How many phone chargers should Rodgers Electronics order?
b. How many phone chargers does Rodgers Electronics expect to sell at a discount?
c. What is the profit that Rodgers Electronics expects to make?
d. What is the profit that the supplier expects to make?
e. Repeat parts (a) to (d) if the studio sells the phone charger for €4 (instead of €4) but gets 40 percent of revenue.
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Related Book For
Supply Chain Management Strategy Planning And Operation
ISBN: 9781292257891
7th Global Edition
Authors: Sunil Chopra
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