The book publishing supply chain consists of authors, publisher, bookstores and end-customers. For a latest thriller nov

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The book publishing supply chain consists of authors, publisher,
bookstores and end-customers. For a latest thriller novel on the
market, it costs the publisher $16 to print a copy of the book,
which is sold to the bookstore at $20. The publisher also pays the
author a royalty, which is around 10%. That is, the author gets 10%
of the publisher’s total revenues from the book sales to the campus
bookstore. Suppose that the retail price of a latest thriller novel
is $60 per book.
Demand
Probability
10,000
0.6
50,000
0.2
100,000
0.1
200,000
0.07
500,000
0.02
1,000,000
0.01
Hint: When you are looking up a target value in a table
and the target value falls between two entries, choose the entry
that leads to the larger order quantity.
Suppose that the publisher suggests the following returns
contract to the bookstore. For any copy of the book not sold at the
end of the semester, the bookstore can sell it back to the
publisher at $18 per book. How many copies of the book should the
bookstore order with this returns contract?
Group of answer choices
500,000
10,000
100,000
200,000
50,000