Benetton has entered a contract with a retailer for a seasonal product. The retailer’s sales price is $50 per unit of product. Benetton’s sales price to the retailers is $34 per unit. Any unsold units can be sold by the retailer to a third party at a salvage value of $25 per unit. The retailer forecasts demand to be normally distributed, with a mean of 8500 and a standard deviation of 1500 units. The retailer has ordered 9040 units. The expected under-stock (sales lost) for this order is 368 units. Benetton’s production cost is $23 per unit. Hint: You do not need to use any formula to compute the expected under-stock. It has already been computed and provided to you.

1. Compute the expected number of units sold by the retailer.

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

A: 5060 units. B: 8511 units. C: 7356 units. D: 8132 units. E: 8469 units.

2. Compute the expected fill rate.

A: 92%. B: 94.6%. C: 98.1%. D: 89.7%. E: 95.7%.

3. Compute the expected over-stock (leftover).

A: 1300 units. B: 1759 units. C: 908 units. D: 1596 units. E: 1661 units.

4. Compute the expected profit for the retailer.

A: $105840. B: $262989. C: $198372. D: $127418. E: $121940.

5. Compute the expected profit for Benetton.

A: $102640. B: $199555. C: $99440. D: $162384. E: $211725.

"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"