Please DONT COPY AND PASTE YOUR ANSWERS FROM SIMILAR QUESTION.

PLEASE PROVIDE STEP BY STEP EXPLAINATION FOR THE STEPS.

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A distributor purchases digital thermostat-boxes (a box contains 100 thermostats) from its manufacturer for $60 per unit and sells to retailers for $80 per unit. Retailers sell thermostats to final consumers or end users for $100 per unit. The manufacturers cost is $40 per unit. At the retail price, the market demand distribution is as follows:

Demand Probability

1 0.10

2 0.25

3 0.35

4 0.20

5 0.10

Manufacturer - sell 60

Distributor Buys 60 Sells 80

Retailer Buys 80 sells 100

1. Compute expected profit matrix for your purchases 1-5 for

1. Retailer,
2. Distributor,
3. Manufacturer,
4. The entire supply chain.

2. You as a retailer utilize your expertise and negotiate with the distributor for a buy-back contract. As per the contract, your distributor would buy-back thermostats that are not sold for $50 per unit. What is your expected profit matrix? What is the distributors expected profit matrix and the manufacturers expected profit?
3. In order to reduce initial investment, you as a retailer negotiate a revenue-sharing plan with your distributor. Under this plan, you buy thermostats for $70 per unit and share 10% of your revenue with the distributor. Compute your and distributors expected profit matrix for orders of 1 to 5.
4. Compute the entire supply chain profit matrix in the revenue-sharing plan.

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Please DONT COPY AND PASTE YOUR ANSWERS FROM SIMILAR QUESTION.

PLEASE PROVIDE STEP BY STEP EXPLAINATION FOR THE STEPS.