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Business, 26.11.2019 05:31 rafi10

Apublisher sells books to barnes & noble at $19 each. the unit cost for the publisher is $4 per book. barnes & noble prices the book to its customers at $38 and expects demand over the next two months to be normally distributed, with a mean of 22,000 and a standard deviation of 7,000. barnes & noble places a single order with the publisher for delivery at the beginning of the twomonth period. currently, barnes & noble 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) how many books should barnes & noble order? what is its expected profit? how many books does it expect to sell at a discount? b) what is the profit that the publisher makes given barnes & noble's actions above?

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Apublisher sells books to barnes & noble at $19 each. the unit cost for the publisher is $4 per...
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