MGEC.pdf - Problem 1 A computer products retailer purchases...

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Problem 1A computer products retailer purchases laser printers from a manufacturer at a price ofRs. 25,000 per printer. During the year, the retailer will try to sell the printers at a pricegreater than Rs. 25,000, but may not be able to sell all the printers. At the end of theyear, the manufacturer will buy back any unsold inventory at 40 percent of the originalprice. No one other than the manufacturer would be willing to buy these unsold printersat the end of the year. -a. At the beginning of the year, before the retailer has purchased any printers, what is
b. After the retailer has purchased the laser printers, what is the economic costassociated with selling a laser printer to a customer? (Assume that if this customer doesnot buy the printer, it will be unsold at the end of the year.) =10000. (Accounting cost)

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Term
Spring
Professor
Bruce Allen, Tarun Jain

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