PLEASE ANSWER C AND D$.$ A candle store sells scented candles at $$8$ per box. At this price, its monthly demand is $900$ boxes

$($assume $30$ days in a month$).$ The shop orders candles from a supplier at $$5$ per box, and also pays $$200$

in shipping fees per order to the supplier. The supplier has production capacity $30$ boxes a day, and

delivering each order costs him $$150(<$$$200).$ The variable cost of production for the supplier is $$2$ per

box. Assume the holding cost for both the store and the supplier is $$1$ per box$-$month.

$($a$)$ What is the store$$s order quantity and annual profit $($assume they are acting optimally given the

demand and financial parameters they face$)?$ How about the supplier$$s profit from the relationship

with this store? What share of the supply chain profit goes to the store and what to the supplier?

$($b$)$ Now suppose that the supplier and the store were co$-$owned. How many boxes would be produced

and shipped in a batch? What would be the supply chain profits?

$($c$)$ Disregard b$).$ What are the parameters of the two$-$part tariff contract $($fixed price per order W$!$ and

variable price per box W$")$ that ensures the total profits amongst the two firms are maximized and

the profit shares are the same as in $($a$)?$

$($d$)$ Note how the optimal two$-$tariff contract differs from the one of the status quo. How would you

describe the supplier$$s current thinking?