Question

2. A computer-products retailer purchases laser printers from a manufacturer at a price of $500 per printer. During the year the retailer will try to sell the printers at a price higher than $500 but may not be able to sell all of the printers. At the end of the year, the manufacturer will pay the retailer 30% of the original price for any unsold laser printers. No one other than the manufacturer would be willing to buy these unsold printers of the end of the year a. At the beginning of the year, before the retailer has purchased any printers, what is the opportunity cost of laser printers I'm looking for a $value here.) b. After the retailer has purchased the laser printers, what is the opportunity cost associated with selling a laser printer to a prospective customere Assume that if this customer does not buy the printer, it will be unsold at the end of the year. Again, I'm looking for a $$ value) C. Suppose that at the end of the year, the retailer still has a large inventory of unsold printers. The retailer has set a retail price of $1,200 per printer. A new line of printers is due out soon, and it is unlikely that many more old printers will be sold at this price. The marketing manager of the retail chain argues that the chain should cut the retail price by $1.000 and sel the laser printers at $200 each. The general manager of the chain strongly disagrees, pointing out that at $200 each, the retaier would lose" $300 on each printer it sells is the general manager's argument correct

need help with all of two

Answer 1

Answer: (2) Giren information of retailer a computer products manufacturer price = 8500 per pointer end of year = 30. @ opportunity cost of lapes printers is: Cat begining of geady oc of Laser printer before the purchase of the goods is given by 8500 per printer He could have used this money and bought something else © After purchasing later printer the ocis: - oc of selling the printer to the prospective customer is 30.). of 500 · This is because of the next best alternative for him is to sell the printer to the manufacturer © Argument correct or not:

"Yes, his argument is correct as the purchase price of the printer for the selles is $500 and if he will have to sell it at 8200, he will lose 8300 on each Printer sold.