1. The brand manager for Modern Foods, Inc. is finalizing plans to launch a new version of the companys fruit juice product. She has decided that the retail price for the product will be $15 per case. The structure of margins in the industry is such that wholesalers earn a margin of 20 percent on sales to retailers, and retailers earn a margin of 30 percent on the retail price. Modern Foods has a policy that requires all products to earn a 40% margin on the price to wholesalers. (Total 8 points)

What is the cost per case to retailers? (1.5 pts)

What is the cost per case to wholesalers? (1.5 pts)

If 100,000 cases of the product are sold, what will be Modern Foods:

total sales revenue? (2.5 pts)

total profit? (2.5 pts)