Do all parts otherwise I will give you downvote AccountingQuestion 3:Consider a supply chain with the manufacturer, thedistributor and the retailer, using a pay-back contract,as below cost-benefit & demand forecasting details:F=$120,000 ; c=$50 ; w=$75 ; s=$15 ; v=$19 ; p=$120;The demand forecasting can be found as below:(units)9,0009,4509,92310,41910,94011,487Prob0.140.090.260.210.180.12a. Calculate the manufacturer's marginal profit,manufacturer's marginal loss, distributor's marginalprofit.6. Calculate the expected profit of the retailer and themanufacturer for 6 above-mentioned demandscenarios. Then, conclude on which production quantityQ to maximize manufacturer's expected profit, whichproduction quantity Q to maximize distributor'sexpected profit.

Marginal profit is the increase in profit earned from selling one more unit. It is the difference…

Calculate the manufacturer's marginal profit, manufacturer's marginal loss, distributor's marginal profit. Calculate the expected profit of the retailer and the manufacturer for 6 above-mentioned demand scenarios. Then, conclude on which production quantity Q to maximize manufacturer's expected profit, which production quantity Q to maximize distributor's expected profit.

Calculate the manufacturer's marginal profit, manufacturer's marginal loss, distributor's marginal profit. Calculate the expected profit of the retailer and the manufacturer for 6 above-mentioned demand scenarios. Then, conclude on which production quantity Q to maximize manufacturer's expected profit, which production quantity Q to maximize distributor's expected profit.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter5: Buying The Necessities

Section: Chapter Questions

Problem 20AA

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