Only need help with question “c” A perishable dairy product is ordered daily at a particular supermarket. The product costs $1.16 per unit and sells for $1.75 per unit. Ifunits are unsold at the end of the day, the supplier takes them back at a rebate of $1 per unit. Assume that daily demand isapproximately normally distributed with = 150 and = 30.(a) What is your recommended daily order quantity for the supermarket? (You may need to use the appropriate appendix table ortechnology to answer this question. Round your answer to the nearest integer.)Q* =(b) What is the probability that the supermarket will sell all the units it orders? (Round your answer to four decimal places.)P(stockout) =(c) In problems such as these, why would the supplier offer a rebate as high as $1? For example, why not offer a nominal rebate? Findthe recommended order quantity at 25¢ per unit. (Round your answer to the nearest integer.)Q* =What happens to the supermarket order quantity as the rebate is reduced?The higher rebate -Select-- the quantity that the supermarket should order.

Given Mean =150 Standard deviation =30 I have solve option C

Answered: units are unsold at the end of the day,…

Intermediate Algebra

19th Edition

ISBN:9780998625720

Author:Lynn Marecek

Publisher:Lynn Marecek

Chapter12: Sequences, Series And Binomial Theorem

Section12.3: Geometric Sequences And Series

Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...

See similar textbooks

Similar questions

What is the total effect on the economy of a government tax rebate of $500 to each household in order to stimulate the economy if each household will spend of the rebate in goods and services?
Franquicias Nororientales, S.A., has some clients that use its process to produceexotic Norwegian dining for clients from all over the world. The cost of operating thefranchised process has a fixed cost of $1,000 per week plus $5 for each unitproduced. Recently, some restaurant owners using the process have beencomplained that the cost model is no longer valid and that the weekly costs are, inactually higher. Your job is to find out if there is strong evidence to supportthe affirmation of the restaurant owners. Obtains a random sample of n = 25restaurants and find out their costs. You also know that the number of units producedin each restaurant it follows a normal distribution with mean μ = 400 and variance σ2 = 625.The average of the weekly costs obtained with the random sample (n = 25) is $3,050.Develop and apply an analysis to find out if there is strong evidence thatconclude that the costs are higher than what the cost model predicts. (Newbolt Exercise 10.58)
18. Suppose that the monthly marginal cost for firefighting portable
A manufacturing firm, Caleb Corp, produces and sells product in its home (US) market, and in a foreign market. There is inherent risk in the revenues collected from the foreign market due to volatility in the exchange rate. Under a benchmark strategy, all of the production takes place in the home country. The resulting expected profits for Caleb Corp are variable, due to variation in the exchange rate. As an approximation, the firm has estimated profits for five possible ranges of the exchange rate, with profit represented as a lottery, L= (.2, 150; .2, 200; .3, 220; .2,250; .1, 270) The probabilities are estimated probabilities for the different ranges. The outcomes in this lottery are the estimated final profit levels (not changes in profit). (a) Calculate the expected profit if the firm follows this benchmark strategy, i.e., E(L)
A manufacturing firm, Caleb Corp, produces and sells product in its home (US) market, and in a foreign market. There is inherent risk in the revenues collected from the foreign market due to volatility in the exchange rate. Under a benchmark strategy, all of the production takes place in the home country. The resulting expected profits for Caleb Corp are variable, due to variation in the exchange rate. As an approximation, the firm has estimated profits for five possible ranges of the exchange rate, with profit represented as a lottery, L= (.2, 150; .2, 200; .3, 220; .2,250; .1, 270) The probabilities are estimated probabilities for the different ranges. The outcomes in this lottery are the estimated final profit levels (not changes in profit). Now suppose the firm can also buy forward contracts on foreign currency to neutralize the effect of the exchange rate on profits. Assume that these provide complete hedging, but that it involves an additional cost, so that following the…
The corporation made a net investment of P500,000 in a vending machine. Over the five years of its useful life, the machine is expected to have net cashflows of P250,000, P200,000, P80,000, P75,000, and P50,000. Assuming the incremental cost of capital was 9%. Requirement: 1. Internal rate of return of the investment
A vendor charges $43 for a jacket. What is the demand function?
Suppose stock A is priced at $30/share and the company will pay a dividend of $0.30/share after two months. An investor purchases 100 shares of A and invests all dividends received at a continuosuly compunded risk-free rate of 5%. After 3 months the stock is sold when the price is $35.40/share. Calculate the 3-month profit.
Use the midpoint method to calculate the price elasticity of demand as the price of cakes increases from $8 to $10 if (a) your income is $20,000 and (b) your income is $24,000.
A company has a price demand function P (x) = 150 − 3x for a certain product. What is the revenue function?
MNO Limited publishes a magazine targeted at urban professionals who live on the east and west coasts of the U.S., and all of the magazines are printed at a marginal cost of $0.50 per copy at a publishing plant in Kansas. If the East Coast elasticity of demand for the magazine is -1.25 and the West Coast elasticity of demand is -1.50, what prices should MNO Limited charge for the magazines in these two markets in order to maximize profits? Price should be $0.50 in both markets Price should be $2.50 on the West Coast and $1.50 on the East Coast Price should be $1.50 on the West Coast and $2.50 on the East Coast Price should be $0.40 on the West Coast and $0.33 on the East Coast

Recommended textbooks for you

Intermediate Algebra

Algebra

ISBN:

9780998625720

Author:

Lynn Marecek

Publisher:

OpenStax College

Intermediate Algebra

Algebra

ISBN:

9780998625720

Author:

Lynn Marecek

Publisher:

OpenStax College

SEE MORE TEXTBOOKS