A toy RETAILER is deciding to sell a seasonal toy at the beginning of Q4. The retail price is $28, and the MANUFACTURER's cost is $15. The RETAILER can recycle books for 50% of the retail price, while the MANUFACTURER offers buy-backs of the unsold toys for $10 per toy from the retailer. Toy demand is norm dist. with 1000 toy average and 250 s-dev. If one single company owns BOTH the manufacturer and retailer, what is the order/production quantity for this firm, and what is the profit?
Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
A toy RETAILER is deciding to sell a seasonal toy at the beginning of Q4. The retail price is $28, and the
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