A publisher sells books to Barnes & Noble at $12 each. The marginal production cost for the publisher is $1 per book. Ba

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A publisher sells books to Barnes & Noble at $12 each. Themarginal production cost for the publisher is $1 per book. Barnes& Noble prices the book to its customers at $24 and expectsdemand over the next two months to be normally distributed, with amean of 20,000 and a standard deviation of 5,000. Barnes &Noble places a single order with the publisher for delivery at thebeginning of the two-month period. Currently, Barnes & Noblediscounts any unsold books at the end of two months down to $3, andany books that did not sell at full price sell at this price.
a. How many books should Barnes & Noble order? What is itsexpected profit? How many books does it expect to sell at adiscount?b. What is the profit that the publisher makes, given Barnes &Noble’s actions?c. A plan under discussion is for the publisher to refund Barnes& Noble $5 per book that does not sell during the two-monthperiod. As before, Barnes & Noble will discount them to $3 andsell any that remain. Under this plan, how many books will Barnes& Noble order? What is the expected profit for Barnes &Noble? How many books are expected to be unsold? What is theexpected profit for the publisher? What should the publisherdo?
Please use excel and show formulas, thank you!