Business, 23.03.2020 16:25 jayyy1002

( Land’s End ) Geoff Gullo owns a small firm that manufactures "Gullo Sunglasses." He has the opportunity to sell a particular seasonal model to Land’s End. Geoff offers Land’s End two purchasing options: •

1. Geoff offers to set his price at $65 and agrees to credit Land’s End $53 for each unit Land’s End returns to Geoff at the end of the season (because those units did not sell). Since styles change each year, there is essentially no value in the returned merchandise.
2. Geoff offers a price of $55 for each unit, but returns are no longer accepted. In this case, Land’s End throws out unsold units at the end of the season. T his season’s demand for this model will be normally distributed with mean of 200 and standard deviation of 125. Land’s End will sell those sunglasses for $100 each. Geoff ’s production cost is $25.

a. How much would Land’s End buy if they chose option 1?
b. How much would Land’s End buy if they chose option 2?
c. Which option will Land’s End choose?
d. Suppose Land’s End chooses option 1 and orders 275 units. What is Geoff Gullo’s expected profit?

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 17:30

Which composition of transformations will create a pair of similar, not congruent triangles? a rotation, then a reflectiona translation, then a rotationa reflection, then a translationa rotation, then a dilationmark this and retumsave and exit

Answers: 2

Answer

Business, 22.06.2019 00:00

Which part/word/phrase in the passage refers to a business’s financing activity seen in a cash flow statement? nathan works as an accountant in a footwear manufacturing company. he is currently preparing the cash flow statement for his employer. during the given accounting period, the company purchased raw materials worth $25,000. it also bought new equipment worth $75,000 to increase its production output. further, it borrowed a long-term bank loan of $100,000 to facilitate further expansion. finally, the company spent $50,000 on advertising its latest brand of footwear in the market. {lol i guessed its "it borrowed a long-term bank loan of $100,000 to facilitate further expansion" and thats correct}

Answers: 1

Answer

Business, 22.06.2019 03:30

When the federal reserve buys and sells bonds to member banks, it is called a. monetary policy b. reserve ratio c. interest rate adjustment d. open market operations

Answers: 2

Answer

Business, 22.06.2019 15:30

The school cafeteria can make pizza for approximately $0.30 a slice. the cost of kitchen use and cafeteria staff runs about $200 per day. the pizza den nearby will deliver whole pizzas for $9.00 each. the cafeteria staff cuts the pizza into eight slices and serves them in the usual cafeteria line. with no cooking duties, the staff can be reduced by half, for a fixed cost of $75 per day. should the school cafeteria make or buy its pizzas?

Answers: 3

Answer

You know the right answer?

( Land’s End ) Geoff Gullo owns a small firm that manufactures "Gullo Sunglasses." He has the opport...

Questions