Note: Here is the excel sheet link with information to solve: https://docs.google.com/spreadsheets/d/1eRjUwUyTORfXeH6fNcvzYH2zbMCnMfOo/edit?usp=sharing&ouid=106694165800865913833&rtpof=true&sd=true

A publisher sells books to Barnes & Noble at $12 each. The marginal production cost for the publisher is $1 per book. B&N prices the book to its customers at $24 and expects demand over the next two months to be normally distributed, with a mean of 20,000 and a standard deviation of 5,000. B&N places a single order with the publisher for delivery at the beginning of the two-month period. Currently, B&N discounts any unsold books at the end of two months down to $3, and any books that did not sell at full price sell at this price.

a) Calculate C_u, C_o, CSL, O, and the Publisher's Expected Profit. All other values will be calculated for you.

b) A plan under discussion is for the publisher to refund B&N $5 per book that does not sell during the two-month period. Assume no salvage value for the publisher. Calculate C_u, C_o, CSL, O, and the Publisher's Expected Profit.