TınazFormers sells a patented product called the CoronaKiller. This device, which sells for $70, is very popular. The CoronaKiller is sold through a distributor who sells to retail stores and to the public through TV Shows. The distributor pays TınazFormers $30 for each CoronaKiller. TınazFormers also sells them through 15-minute television shows and on the Healthy TV for $70 plus $15 for shipping and handling. Although each TV Show increases the public awareness of the product, thereby stimulating sales in the retail stores, TV Show sales also preempt retail sales. The distributor sells sufficiently large numbers of units that, for every 10 CoronaKillers sold via the TV Show, two units will not be sold in a retail outlet. For each unit sold on the TV Show, TınazFormers TınazFormers pays $5 to the shipping company for mailing and $2 to the phone-answering company for providing the toll-free number and processing the order. TınazFormers purchases CoronaKillers from the manufacturer, which produces them for $12 They are shipped directly to either the distributor or to the shipping company. A 15-minute TV Show on the Healthy TV costs $800,000. TınazFormers has already produced the taped show for the TV Show and is now deciding how many 15-minute TV Shows to purchase over the next 2 months. The Healthy TV sells time slots 60 days in advance. From past experience, TınazFormers estimates the first 15-minute TV Show will yield 22,000 unit sales. Each subsequent showing of the TV Show will yield only 90 percent of the units sold following the previous TV Show. How many 15-minute TV Show should TınazFormers purchase for the next 60 days?
Q1. TınazFormers sells a patented product called the CoronaKiller. This device, which sells for $70, is very popular. The CoronaKiller is sold through a distributor who sells to retail stores and to the public through TV Shows. The distributor pays TınazFormers $30 for each CoronaKiller. TınazFormers also sells them through 15-minute television shows and on the Healthy TV for $70 plus $15 for shipping and handling. Although each TV Show increases the public awareness of the product, thereby stimulating sales in the retail stores, TV Show sales also preempt retail sales. The distributor sells sufficiently large numbers of units that, for every 10 CoronaKillers sold via the TV Show, two units will not be sold in a retail outlet. For each unit sold on the TV Show, TınazFormers TınazFormers pays $5 to the shipping company for mailing and $2 to the phone-answering company for providing the toll-free number and processing the order. TınazFormers purchases CoronaKillers from the manufacturer, which produces them for $12 They are shipped directly to either the distributor or to the shipping company. A 15-minute TV Show on the Healthy TV costs $800,000. TınazFormers has already produced the taped show for the TV Show and is now deciding how many 15-minute TV Shows to purchase over the next 2 months. The Healthy TV sells time slots 60 days in advance. From past experience, TınazFormers estimates the first 15-minute TV Show will yield 22,000 unit sales. Each subsequent showing of the TV Show will yield only 90 percent of the units sold following the previous TV Show. How many 15-minute TV Show should TınazFormers purchase for the next 60 days?
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