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 $11 per DVD. The marginal production cost for the movie studio is $2 per DVD. Blockbuster prices each DVD at $23 to its customers. DVD s are kept on the regular rack for a one-month period, after which they are discounted down to $4. Blockbuster places a single order for DVDs. Their current forecast is that sales will be normally distributed, with a mean of 100,000 and a standard deviation of 40,000.

a. How many DVDs should Blockbuster order?

b. What is its expected profit?

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

Please show the calculations...

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91641261

Have any Question?Write your Review or question?

Related Questions in Operation Management

1 what formal and informal orientation processes exist in

1. What formal and informal orientation processes exist in your organization or an organization with which you are familiar? What would you add to the current orientation process? 2. Explain specific ways that Chad can e ...

1 the control environment establishes the tone at the top

1. The control environment establishes the 'tone at the top' of a company." What are the elements of the control environment that must be considered? 2. Choose one privacy law in another country, and discuss what organiz ...

Stolen goods and void title in a case where a buyer

Stolen goods and Void Title. In a case where a buyer purchases goods or a lessee leases goods from a thief who has stolen them, the purchase does not acquire title to the goods and the lessee does not acquire any leaseho ...

1 should companies be concerned about how much more the ceo

1. Should companies be concerned about how much more the CEO gets paid compared to the lowest paid worker? Why or why not? Please provide one reason for why, and one reason for why not. 2. What is a major strength and ma ...

A what would be your first choice for an advertising medium

(a) What would be your first choice for an advertising medium for an entrepreneur owning a rental car agency? Why? (b) List three other possible advertising methods.: How can an entrepreneurial firm benefit from the serv ...

Answer this question using these Answer this question using these principles: justice

Answer this question using these principles: justice beneficience fedelity justice autonomy non-maleficience This is a bioethics question. any advice on how to answer this ...Are there any ethical issues surrounding the ...

Report to management formatmkgp has just introduced a new

Report to Management Format. MKGP has just introduced a new product line. It is considering three options regarding its new product line: (1) subcontract, (2) expand existing facility, or (3) build a new facility. A cons ...

All-star bat manufacturing inc supplies baseball bats to

All-Star Bat Manufacturing, Inc. supplies baseball bats to major and minor league baseball teams. After an initial order in January, demand over the six-month baseball season is approximately constant at 1000 bats per mo ...

1 social profiles and crowdsourced ratings can improve

1) Social profiles and crowdsourced ratings can improve trust, but they can also create opportunities for fraud and discrimination. Give examples of where this technology may have negative ethical implications, and discu ...

Ulrich 1998 argues that despite hrs generally poor

Ulrich (1998) argues that despite HR's generally poor reputation within organisations, given the competitive forces which exist in the current day" achieving organisational excellence must be the work of HR" According to ...

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