Question: I need the answer for problem 2, however, I included the necessary information from Problem 1 1. A University bookstore is stocking a new textbook

I need the answer for problem 2, however, I included the necessary information from Problem 1
1. A University bookstore is stocking a new textbook for a course that will be offered only once. The book will cost them $40 per copy (including all shipping and handling costs), and will retail for $60. After the course is over, the book can be sold to a used bookseller at $10 per copy. The bookstore estimates that demand for the textbook is distributed D~N(60,252). Printing a copy of the textbook (including royalty fees, etc.) costs the publisher, Pen Press, $14. (a) What order quantity maximizes the bookstore's expected profit? (b) What is the bookstore's expected profit on this textbook? (c) What is Pen Press' expected profit on this textbook? 2. Consider Problem 1, except that the instructor decides to use a book published by the university's own press (Uni Press). This book is virtually identical to Pen Press' book (i.e., it costs the same to print, the demand distribution for the book will be the same, etc.). Treat the University bookstore and Uni Press as vertically integrated; both are part of the same university, after all. (a) What order quantity maximizes the university's expected profit on this textbook? (b) What is the university's expected profit on this textbookStep by Step Solution
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