how may cds should top gun order, Supply Chain Management

Assignment Help:

Top Gun Records and various movie studios have decided to sign a revenue-sharing contract for DVDs.  Every DVD costs the studio $2 to make.  The DVD will be sold to Top Gun for $3.  Top Gun in turn prices a DVD at $15 and forecasts demand to be normally distributed, with a mean of 5,000 and a standard deviation of 2,000.  Any unsold CDs are discounted to $1, and all sell at this price.  Top Gun will share 35 percent of the revenue with the studio, keeping 65 percent for itself.

a.    How may CDs should Top Gun order?

b.    How many CDs should Top Gun expect to sell at a discount?

c.    What is the profit that Top Gun expects to make?

d.    What is the profit that studio expects to make?


Related Discussions:- how may cds should top gun order

Solution to a case study, I am looking for a solution to a case study : Sub...

I am looking for a solution to a case study : Subcontract Review and Consent by the Government. Main character is Lieutenant Ralph Sliden.

Explain the meaning of and reasons for currency fluctuation, QUESTION 1 ...

QUESTION 1 (a) Explain the meaning of and reasons for currency fluctuation (b) How can buyers protect themselves against the risks of currency fluctuation in International P

Integrated data model, The heart of any ERP system is the creation of an in...

The heart of any ERP system is the creation of an integrated data model which has a true integration capability over the entire enterprise system particularly providing the data fo

Challenge question, what is the potential negative or downside to the long-...

what is the potential negative or downside to the long-term Starbucks-OHL collaboration? identify what you can consider to be three major potential problems in such long-term relat

Reducing and controlling errors of measurement, R educing and controlling ...

R educing and controlling errors of measurement To reduce and control errors for all sources of measurement variation steps can be taken. By applying a numerical connectio

Warehouse, introduction of materials handling

introduction of materials handling

Determine the eoq for the material, Problem 1 Aerial Products has prod...

Problem 1 Aerial Products has produced 100 airframes with the following mix data.  Perform a complete SPC analysis identifying if the process is in control, if the process is

Relation between SCM and Cruise International, explain to what extent SCM i...

explain to what extent SCM is applicable to a service operation such as Management at Cruise International, Inc.

Calculate long-run aggregate, 1. Explain whether each of the following even...

1. Explain whether each of the following events will increase, decrease, or have no effect on long-run aggregate supply. Canada experiences a wave of immigration. Provinci

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd