Question: Please write clearly or use the computer to type the answer so that I can see it clearly, thank you!!! To encourage the US distributor

Please write clearly or use the computer to type the answer so that I can see it clearly, thank you!!!Please write clearly or use the computer to type

To encourage the US distributor to place a larger order, the manufacturer now plans to offer the distributor a revenue sharing contract. The manufacturer agrees to decrease the price from $20 to $15 per bottle. In return, the distributor gives 15 percent of its sales revenue to the manufacturer. The distributor can sell all unsold products to a discount store at $5 per bottle. There is no need for the manufacturer to salvage the products. For the manufacturer, the fixed and variable production costs remain unchanged. The distributor has determined that with this revenue sharing contract its expected profit equals to $84,000 if order quantity is 8,000 bottles and $90,700 if order quantity is 10,000 bottles. C. Based on the revenue sharing contract, determine the expected profit for the distributor if order quantity is 12,000 bottles, and the optimal order quantity that will maximize the distributor's profit. (5 marks) Mark [] D. If the distributor adopts the optimal order quantity of Q4C, determine the manufacturer's expected profit. (4 marks) Mark To encourage the US distributor to place a larger order, the manufacturer now plans to offer the distributor a revenue sharing contract. The manufacturer agrees to decrease the price from $20 to $15 per bottle. In return, the distributor gives 15 percent of its sales revenue to the manufacturer. The distributor can sell all unsold products to a discount store at $5 per bottle. There is no need for the manufacturer to salvage the products. For the manufacturer, the fixed and variable production costs remain unchanged. The distributor has determined that with this revenue sharing contract its expected profit equals to $84,000 if order quantity is 8,000 bottles and $90,700 if order quantity is 10,000 bottles. C. Based on the revenue sharing contract, determine the expected profit for the distributor if order quantity is 12,000 bottles, and the optimal order quantity that will maximize the distributor's profit. (5 marks) Mark [] D. If the distributor adopts the optimal order quantity of Q4C, determine the manufacturer's expected profit. (4 marks) Mark

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!