What is the total profit for the supply chain now

Assignment Help Managerial Economics
Reference no: EM13975547

Tom owns an independent bookstore located in Philadelphia. Tom has to decide on the best order quantity for a new self-help book that is to be released soon. The books will each cost Tom $20 but will retail for $30. At the end of the season, Tom can dispose of all of the unsold copies of the book at $5 each. Tom estimates that demand can be represented by a normal distribution with mean 240 and a standard deviation of 100. The publisher's cost per book is $7. 

a. What order quantity maximizes Tom's expected profit? 
b. What is Tom's expected profit? 
c. What is the resulting profit for the publisher?
d. What quantity will maximize the supply chain's profit? 
e. How much is the total supply chain profit?
f. What quantity should Tom order if he wishes to maximize his expected profit? 
g. What is the resulting profit for the publisher? 
h. What is the total profit for the supply chain?
i. Compute the best buy-back price.
j. Compute the resulting profit for Tom under the best buy-back price.
k. Compute the resulting profit for the publisher under the best buy-back price.
l. What is the total profit for the supply chain now?

Reference no: EM13975547

Questions Cloud

Describe the electric field in the three regions : The figure shows a spherical conducting shell, inner radius a, and outer radius b, with a point charge + Q inside. In case (1) the point charge is at the center of the shell, and in case (2) it is off-center. Use Gauss's law to predict the charge ..
Identify the market that the graph is depicting : Draw a graph, label the axes and identify the market that the graph is depicting and explain in words how either the demand or supply curve moves given the discussion in the article
Comment on the dean explanation : If this university's overall pass rate for the Maryland bar exam were really 76%, what would be the probability of a simple random sample of 400 having a pass rate of 60% or less? Based on this probability, comment on the dean's explanation.
Display the list of what was purchased : Create a shopping list - Present the items back to the user and have the user determine the order of importance for the item to purchase.
What is the total profit for the supply chain now : What quantity should Tom order if he wishes to maximize his expected profit? What is the total profit for the supply chain now?
Problem regarding the test the potential customer : Given the longevity of the vendor's bulbs and the test the potential customer will be carrying out, what is the prob- ability that the vendor will get the contract?
Relationship b/w the housing market and monetary policy : The topic is the Alan Greenspan's monetary policy regarding the housing market. I only want to focus on the relationship bwtween the housing market and monetary policy (or the Federal Funds rate). This is an opinion paper, and the audience should ..
Problem regarding the psychic phenomenon : Given the probability you've calculated, would you suggest that Donald drop his plan to list himself in the yellow pages as a psychic phenomenon?
Find the magnitude of the force on the bottom right wire : Find the direction of the force that on the bottom left wire due to the other two wires. Specify the angle from the +x-axis going counter-clockwise (see figure on right).Find the magnitude of the force on the bottom left wire due to the other two ..

Reviews

Write a Review

Managerial Economics Questions & Answers

  Compute the break even point for operating expenses

Dale is planning an expansion of his present facilities to accomodate additional bussiness. His current income statement is as follows:

  How many tires should it produce in order to maximize profit

How many tires should it produce in order to maximize its profits? What's DurableTires' profit in this case? Should the elasticity of demand be greater, equal, or less than 1 at the profit-maximizing price and quantity? Explain

  What leasing price would have to be charged

How many customers will be needed in Year 0 to break even, measured by the present worth = 0, if the lease price per unit is $1,245 - what leasing price would have to be charged to achieve a present worth of $1 million at a quantity of 10,000 cu..

  Control the monetary base than broader money

It is easier to control the monetary base than broader money, but it is less relevant to do so. Do you agree with this statement?

  Do an economic analysis of coke and pepsi

Do an economic analysis of two giant competitor brands, Coke and Pepsi, in the context of them being rivals in the "Twenty-First Century" and use all the knowledge you have gathered over the last several weeks.

  Economic action plan

Go to the website http:// www.fin.gc.ca. Click on "Budgets", then on "Archived Budget Documents", then on "2009", and finally on "Budget in Brief.Is the reasoning presented consistent with the model.Does knowlege of the model help you understand this..

  Analyzing current pricing decisions

Price comparison services on the Internet are a popular way for retailers to promote their products and a convenient way for customers to simultaneously obtain price quotes from many firms setting I identical product.

  Calculate gdp for joe using both the product

Calculate GDP for Joe using both the product and income approaches and show how they must agree.

  Explain how marketing communications can affect

Explain how marketing communications can affect consumers cognitively based attitudes. Contrast emotional and fear appeals. Use an example to illustrate your discussion.

  Using a spreadsheet like the following entering formulas

using a spreadsheet like the following entering formulas for the total revenue and consumers surplus and given the

  An airline ticket costs the same from casper wyoming

An airline ticket costs the same from casper wyoming to denver colorado and from denver to orlando florida. does this, Hire Microeconomics Expert, Ask Economics Expert, ... Does this make economic sense? Explain the rationale behind equal prices for ..

  Industry paper as a partial requirement for this course you

industry paper as a partial requirement for this course you will have to submit a paper on an industry of your choice.

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