Question: Can I please get some help here? A retail store in Hanes Mall in Winston - Salem purchases computer software from a distributor for resale.

Can I please get some help here? A retail store in Hanes Mall in Winston-Salem purchases computer software from a distributor for resale. For an upcoming promotion, the retailer needs to determine the best order size for a one-time purchase. One of the products is a word processing program that will have a special sale price of \(\$ 350\). The retailer estimates the following demand schedule: A. The program can be purchased from a distributor for \(\$ 250\) each, but there is a restocking charge of \(20\%\) of the purchase price for the return to the distributor of any unsold programs, that is, the distributor would only refund \(\$ 200\) to the retail store for any returned program. As such, the retailer makes a loss of \(\$ 50\) on every unsold program. (80 points) i) What should be the optimal order size for the retailer? ii) What will be the expected optimal profit for the retailer? B. Consider the following change made by the distributor. In order to reduce its risk, the distributor would refund \(\$ 200\) back to the store for only \(80\%\) of the returned items. For the remaining \(20\%\) of the returned items, the restocking charge is \(40\%\), that is, the distributor would only return \(\$ 150\) to the store. Re solve the question to find the new optimal order quantity for the retailer and the new expected optimal profit. (20 points).

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