A movie studio sells the latest movie on dvd to blockbuster, Ask an Expert

Management Studies

A movie studio sells the latest movie on DVD to Blockbuster at $10 per DVD. The marginal production cost for the movie studio is $2 per DVD. Blockbuster prices each DVD at $25 to its customers. DVD s are kept on the regular rack for a one-month period, after which they are discounted down to $3. Blockbuster places a single order for DVDs. Their current forecast is that sales will be normally distributed, with a mean of 50,000 and a standard deviation of 30,000.

How many DVDs should Blockbuster order? What is its expected profit?

What is the profit that the studio makes given Blockbuster’s actions?

The studio is offering Blockbuster a deal: They will sell the DVD to blockbuster at $5 each in return for a 65-35 split of the revenue (65% to Blockbuster).Should Blockbuster agree to this deal?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91411496

Have any Question?Write your Review or question?

Related Questions in Operation Management

Explain the concept of the cost of quality model and then

Explain the concept of the cost of quality model and then link your explanation to how the cost of quality model can be used to monitor and improve supplier quality. What are some advantages and disadvantages of the cost ...

Discuss one 1 project where you used a problem-solving

Discuss one (1) project where you used a problem-solving approach to address what turned out to be common-cause variation, or where you used a process improvement approach to deal with a special cause. If you do not have ...

Essay business communications1-discuss the three internal

(ESSAY) (Business Communications) 1-Discuss the three internal communication patterns. 2-What is included in the "communication environment"? 3-Explain how the appearance of a message can be a barrier to effective commun ...

Discussionmdashcritical leadership competencies needed in

Discussion—Critical Leadership Competencies Needed in 2020 Consider all you have learned in the course so far and the trends that have been discussed, particularly around leaders being able to strategize and execute to r ...

Case studybr investments is a reputed finance company

Case Study B.R Investments is a reputed finance company having 15 branches in different part of the country. In the home office there are more than 200 employees. This company has a performance rating under which the emp ...

1 when using a level capacity strategy or ldquolevel

1. When using a "level capacity strategy" or “level production strategy” in aggregate planning, variations in demand are met by using which of the following options? I. varying output during regular time without changing ...

1 with the large number of devices available and used by

1. With the large number of devices available and used by organizations and individuals, we produce large amount of data every day, which it has created many challenges to organizations to store and protect the data. Dis ...

1 community stakeholders issues of concern include all of

1. Community stakeholders issues of concern include all of the following except: a- pollution of the environment b- land use c- economic advantage to the region d- discrimination e- corporate profits and shareholder weal ...

1 aleta is developing a new software company she locates

1. Aleta is developing a new software company. She locates her business in an industrial park that offers low rent and shared support staff to start-up companies. This is an example of a ________. A) business incubator B ...

1 as a city manager of a medium size city property tax is a

1. As a city manager of a medium size city, property tax is a major source of city revenue. What are the major challenges with property tax revenue caps? 2. What is the meaning of supporting your answer with scholarly so ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert