a)

b) In the above problem, Colemans fixed cost is $98,923 and the variable cost is $32.1/unit. What is Colemans (manufacturer) profit?

Home Depot is negotiating a supply contract with Coleman Company for the supply of barbeque grills next summer. The contacted wholesale supply price is $90/unit and the expected summer demand distribution for the grills is given in the table below. Home Depot plans a selling price of $148/unit, and items unsold after 5 months will be sold at a clearance price of $42. What is the expected retailer profit if the wholesale order quantity is 8400 units? DEMAND PROBABILITY 5,068 8% 6,436 12% 7,049 21% 7,922 30% 8,306 20% 8,832 9% 9,257 5%