(10 pts) topgun records and several movie studios have decided to sign a revenue-sharing contract for dvds. each dvd costs the studio $3 to produce. the dvd will be sold to topgun for $4. topgun in turn prices a dvd at $25 and forecasts demand to be normally distributed, with a mean of 9,000 and a standard deviation of 3,000. any unsold dvds are discounted to $2, and all sell at this price. topgun will share 40 percent of the revenue with the studio, keeping 60 percent for itself.
a) how many dvds should topgun order?
b) how many dvds does topgun expect to sell at a discount?
c) what is the profit that topgun expects to make?
d) what is the profit that the studio expects to make?
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(10 pts) topgun records and several movie studios have decided to sign a revenue-sharing contract fo...
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