Reliance Fresh is sourcing electric tandoori ovens from Panasonic for its Indian retail operations. The two parties have negotiated a wholesale supply price of $310/unit. The expected demand distribution for the tandoori ovens is given below. Reliance plans a selling price of $430/unit, ovens unsold after 6 months will be sold at a clearance price of $215/unit. What is the expected Reliance Fresh profit if the wholesale order quantity is 5300 units? Integer

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Reliance Fresh is sourcing electric tandoori ovens
from Panasonic for its Indian retail operations. The
two parties have negotiated a wholesale supply price
of $310/unit. The expected demand distribution for
the tandoori ovens is given below. Reliance plans a
selling price of $430/unit, ovens unsold after 6
months will be sold at a clearance price of $215/unit.
What is the expected Reliance Fresh profit if the
wholesale order quantity is 5300 units? Integer
answer.
DEMAND PROBABILITY
4,296
4,419
4,898
5,057
5,388
5,554
6,264
In the above problem, Panasonic's variable cost is
$121/unit and the fixed production cost is $207,935.
What is Panasonic's (manufacturer) profit? Integer
answer.
6%
14%
21%
28%
22%
9%
5%
Transcribed Image Text:Reliance Fresh is sourcing electric tandoori ovens from Panasonic for its Indian retail operations. The two parties have negotiated a wholesale supply price of $310/unit. The expected demand distribution for the tandoori ovens is given below. Reliance plans a selling price of $430/unit, ovens unsold after 6 months will be sold at a clearance price of $215/unit. What is the expected Reliance Fresh profit if the wholesale order quantity is 5300 units? Integer answer. DEMAND PROBABILITY 4,296 4,419 4,898 5,057 5,388 5,554 6,264 In the above problem, Panasonic's variable cost is $121/unit and the fixed production cost is $207,935. What is Panasonic's (manufacturer) profit? Integer answer. 6% 14% 21% 28% 22% 9% 5%
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