how may cds should top gun order, Supply Chain Management

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?

Posted Date: 3/16/2013 5:30:05 AM | Location : United States







Related Discussions:- how may cds should top gun order, Assignment Help, Ask Question on how may cds should top gun order, Get Answer, Expert's Help, how may cds should top gun order Discussions

Write discussion on how may cds should top gun order
Your posts are moderated
Related Questions
Define traffic assignment in transportation system and discuss the major aims of traffic assignment? It is the method of assigning a set of trip interchange data to a specified

#question Tom Rich and Joe Miser have an e-checking/savings account at the eKU bank. Both Tom and Joe had $5000 in their account at the start of the calendar year 2013. Both have

questionHow will you influence people to strive willingly for group objectives in your organization (target based industry)? Apply your interpersonal influence through communicatio

What is supply chain strategy

Q. Explain the formulation of a customer service strategy? i. Customer service segmentation: It involves identification of the different segments of the organization's cu

In 2008, the world economy experienced so-called global recessions, sharp falls in income and rapid increases in unemployment. a. Briefly summarize the main causes for the globa

Dear Sir I am Omar. I want to ask you. I am doing master project about supply chain management My project topic is: Supply chain management at Automotive Industry ( Ford and Toy

Review your transformation process and identify the major bottlenecks that might be restricting smooth flow of operations, causing delays and impacting process performance.  Exp

Harley Davidson purchases components from three suppliers. Components purchased from Supplier A are priced at $ 5 each and used at the rate of 240,000 units per year. Components pu

Question 1 Discuss the Visualisation strategy in advertising and the components of Visualisation strategy Question 2 Describe the elements of execution of advertising in brie