a. Problem #3 Becoming extremely busy over the next few months, Sheen decided to hand over the retailing portion of her business to another Hamptonshire resident, Ralph Armentrout. Ralph would run the newsstand from 6 a.m. to 10 a.m. and pay the newsstand rental fee of $30 per day. Based on his review of a copy Anna sent him the night before the paper would be sold, Ralph would estimate demand for the Express and place an order with the printer. The newspapers would be delivered to the newsstand by 6 a.m. the following morning. Ralph would be responsible for any newspapers left unsold at the end of the day. Assuming h =4, (i.e., Sheen has spent four hours creating the profiles section), what would Armentrout's stocking quantity be? To identify the stocking quantity that maximizes Armentrout's profits, try varying Q while holding h =4 in the spreadsheet "Hamptonshire Express Problem #3." b. Why does the optimal stocking quantity differ from the optimal stocking quantity identified in Problem #2? Is the result here consistent with the newsvendor formula? Now try varying h in spreadsheet "Hamptonshire Express: Problem #3c") to see what happens to Sheen's profit. (Note: this spreadsheet calculates the optimal newsvendor calculation for differentiated channel to maximize Ralph's profit.) Does her optimal effort in this question differ from the answer to question 2. Why or why not? d. How would changing the transfer price from the current value of $0.80 per newspaper affect Sheen's effort level and Armentrout's stocking decision? Try changing the transfer price in the spreadsheet "Hamptonshire Express: Problem #3d." (Embedded in this spreadsheet are formulas for h and Q.) What conclusions can you draw about stocking and effort levels in a differentiated channel vis-- vis an integrated firm that manufactures and retails its product? c. e