- DO NOT USE CHAT GPT PLEAZE - ALSO IF YOU CAN COMPUTE BY EXCEL, IT WOULD BE GRATEFUL. THANK YOU :)

Case 3. (Show all your works: including all computational procedures and details) The fashion company Sharp-Dressed Man Inc (SDM). produces and sells fancy shirts. The product consumption value () that customers can obtain while consuming the product is uncertain. The following table presents the probability corresponding to the consumers' consumption value: Table 1 If we observe the table, as you may know, the consumer's obtainable consumption value is expressed in monetary terms. For example, there is a 5% chance of obtaining a consumption value worth $100 by using the product. (a) Calculate consumers' average consumption value (v) that customers can obtain by using the product and align the price of the company with the average consumption value (P=v). The production cost is C=$300, and the surplus products are offered at a discounted price of b=$270 per unit to bargain hunters. SDM's cumulative demand distribution is given as Probability(demandQ)=010Q01Q1 Then SDM's mean sales quantity, S(Q), given the production quantity Q is S(Q)=Q(12Q) Moreover, the expected discount sales (salvage) quantity =QS(Q) is QS(Q)=2Q2 (a.1) Decides the optimal production quantity. (a.2) Computes the expected (mean) profit. (b) Assuming SDM allows consumers to return the product if they do not intend to keep it, SDM will provide a refund of r=$270 for each returned product. The returned products will be salvaged at the end of the sales season and sold to bargain hunters at a discounted price of d=$270 per unit. With the refund set at $270, consumers whose consumption value is lower than $270 will choose to return their product since it is more profitable for them. On the other hand, consumers whose consumption value exceeds $270 will opt to keep and consume the product. Please calculate consumers' average consumption and refund value given the newly added return refund option and align the price of the company with the average consumption and refund value. (b.1) Decides the optimal production quantity. (b.2) Computes the expected (mean) profit