5. Referring to the Swimsuit Production, revenue-sharing contracts, case, there are a manufacturer and a retailer....

 

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5. Referring to the Swimsuit Production, revenue-sharing contracts, case, there are a manufacturer and a retailer. Given that manufacturer's fixed cost (FC) is $60,000 and the variable production cost (ve) is $10/unit; he would charge the retailer $40/unit (the wholesale price), and also ask the latter for 25% of sales (revenue sharing) for each unit of swimsuit sold. The retailer's selling price (sp) is $100/unit, and she gets a salvage value (sv) $15/unit for any leftovers at the end of the season. The retailer forecasts the demand for next season is as follows. What are the expected profits for the retailer and manufacturer, respectively? (10%) Demand (units) Probability (%) Manufacturer FC=$60K vc=$10/unit 12,000 13.000 14,000 15.000 15 20 25 20 $40 25% of sales Retailer 16,000 20 sp=$100/unit sv=$15/unit 5. Referring to the Swimsuit Production, revenue-sharing contracts, case, there are a manufacturer and a retailer. Given that manufacturer's fixed cost (FC) is $60,000 and the variable production cost (ve) is $10/unit; he would charge the retailer $40/unit (the wholesale price), and also ask the latter for 25% of sales (revenue sharing) for each unit of swimsuit sold. The retailer's selling price (sp) is $100/unit, and she gets a salvage value (sv) $15/unit for any leftovers at the end of the season. The retailer forecasts the demand for next season is as follows. What are the expected profits for the retailer and manufacturer, respectively? (10%) Demand (units) Probability (%) Manufacturer FC=$60K vc=$10/unit 12,000 13.000 14,000 15.000 15 20 25 20 $40 25% of sales Retailer 16,000 20 sp=$100/unit sv=$15/unit