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A movie studio sells the latest movie on DVD to Blockbuster at $10 per DVD. The marginal production cost for the movie studio is $1 per DVD. Blockbuster prices each DVD at $20 to its customers. DVD s are kept on the regular rack for a one-month period, after which they are discounted down to $5, Blockbuster places a one order for DVDs. Their current forecast is that sales will be normally distributed, with a mean of 10,000 and a standard deviation of 5,000. a. How many DVDs should Blockbuster order? b. What is its expected profit? c. How many DVDs does it expect to sell at a discount? d. What is the profit that the studio makes given Blockbuster's actions? A plan under discussion is for the studio to refund Blockbuster $4 per DVD that does not sell during the one-month period. As before, Blockbuster will discount them to $5 and sell any that remain. e. Under this plan, how many DVDs should Blockbuster order? f. What is the expected profit for Blockbuster? g. How many DVDs are expected to be unsold at the end of the month? h. What is the expected profit for the studio? i. What should the studio do?
I am looking for a solution to a case study : Subcontract Review and Consent by the Government. Main character is Lieutenant Ralph Sliden.
Describe how negotiations with suppliers are conducted to obtain goods and services at accepted costs. What are the channels of distribution for the different types of goods?
1- The smallest defect in a computer chip will render the entire chip worthless. Therefore, tight quality control measures must be established to monitor these chips. In the past
How to integrated the cost elements such as administrative overheads and risks in total landed cost model? Seems these two cost elements are hard to quantify.
Based on your own research on the use of e-commerce/e-procurement in the public and private sectors, what are those elements that you consider to be unique to each? How would yo
compare and contrast push-based production strategies with pull-based strategies. what are the primary capabilities, advantages and disadvantages?
Benefits Outsourcing would eliminate the time constraints and the developmental process would take place at a faster pace Boeing can remain abreast of the latest trends
how to judge whether it is worth processing an order of $ 1,000 at a gross margin of $ 200?
Question 1: (a) Explain the term ‘framework agreement' in the context of public procurement. (b) Discuss the benefits of aggregation of some items in public procurement in M
4. About 5% of delivered products are spoiled upon delivery with either the fish or plants dying, or both, due to sensitivity to changes in temperatures, which is a major financial
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