At the Rady Computer Corp (RCC), a major product is the power supply. RCC's unit cost to manufacture this item is $900, while its selling price is $1250. However, if the power supply does not sell at retail, it can be sold at a discount of $850 per unit.
a) What is the Net Marginak Benefit of purchasing each incremental unit?
b) What is the Net Marginal Cost?
c) Assuming that you had the cummulative distribution of the demand for power supplies, how would you determine the Order Quantity if the demand was discrete?