Consider a dyadic SC with one manufacturer (M) and one retailer (R), specializing in the manufacturing and sales of a differentiated product Y. The annual market demand for Y, solely supplied by this SC, is estimated as , where is purchase price. It costs M $2 to manufacture one unit of Y. a) Currently, M wholesales and R retails the product at the rate of $3.5, and $5.5, respectively. Calculate the profit for, M, R, and the SC. b) As in part a), assume M and R are decentralized. Determine the optimal wholesale and optimal retail price. Accordingly, calculate the profits for M, R, and the SC. Are your results for part b) better than a)? c) Suppose M and R have vertically integrated. Determine the optimal selling price and the total profit. Compared to your results in part b), calculate the percent change in total demand supplied and the percent change in total SC profit.

Wilderness Products, Incorporated, has designed a self-inflating sleeping pad for use by backpackers and campers. The following information is available about the new product: a. An investment of $1,350,000 will be necessary to carry inventories and accounts receivable and to purchase some new equipment needed in the manufacturing process. The company's required rate of return is 24% on all investments. b. A standard cost card has been prepared for the sleeping pad, as shown below: Direct materials Direct labor Manufacturing overhead (20% variable) Total standard cost per pad Standard Quantity or Hours 4.0 yards 2.4 hours 2.4 hours Standard Price or Rate $2.70 per yard $8.00 per hour $12.50 per hour Standard Cost $10.80 19.20 30.00 $ 60.00 c. The only variable selling and administrative expense will be a sales commission of $9 per pad. The fixed selling and administrative expenses will be $732,000 per year. d. Because the company manufactures many products, no more than 38,400 direct…

The total revenue function for a product is given by R=805 x dollars, and the total cost function for this same product is given by ​c=24500+70x+x square, where C is measured in dollars. For both​ functions, the input x is the number of units produced and sold. a. Form the profit function for this product from the two given functions. b. What is the profit when 26 units are produced and​ sold? c. What is the profit when 40 units are produced and​ sold? d. How many units must be sold to break even on this​ product?

what is the Revenue, cost and profit functions for the problem below? Orange Company buys Product A for P15 per units and sells them for P25 per unit. There areno other variable costs. Fixed cost is P6,000. Use the breakeven formula to determine thefollowing:a. Revenue, cost and profit functions.