ute buy-back contract. For the seller, the cost of manufacturing a Ski-Jacket is $35 per unit. The buy-back price is $42/unit, and the fixed cost is $100000. For the buyer, the selling price is $95/Ski-Jacket, the purchase price is $55/Ski-Jacket and the purchase quantity is 15,000. The demand for the buyer follows a discrete distribution as given below: Demand Probability 12,000 0.071 13,000 0.071 14,000 0.143 15,000 0.143 16,000 0.214 17,000 0.07 18,000 0.143 19,000 0.145

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