Question: Doc s supplier is contemplating cutting out the middleman ( i . e . , Doc Nix ) and offering its products only through a
Docs supplier is contemplating cutting out the middlemanie Doc Nix and offering its products only through a direct channel. The cost and demand information are the same as in question In this case, please answer the following:
a How many specialty TShirts should the supplier produce to maximize profits?
Response: Tshirts
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b What is the suppliers expected profit?
Response: $ profit
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Docs supplier is also considering offering him a buyback contract with the same wholesale price.
c What is the optimal buyback amount ie b
Response: the optimal payback amount is $
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d What is Docs expected profit with the buyback contract?
Response: the expected profit is $ profit
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e What is the suppliers expected profit with the buyback contract?
Response: the expected profit for the supplier is $
Detailed calculations
Provide answer with detailed calculations
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