1.A manufacturer's suggested retail price (MSRP) for a consumer product is $49. The manufacturer has a marginal cost of $15 for this product and its price to a retailer is $25.Show all your calculations in the questions below.[12]

(**)Assume that the retailer seeks to share the burden of a price discount with the manufacturer such that its promotional price of 15-percent-off coincides with a reduction in price from the manufacturer of 7.5 percent. What are the volume hurdles faced by each of the retailer and the manufacturer under this scenario? [8]

(a)What is the for this product at the manufacturer level? [1]

(b)What is the initial contribution margin for this product at the retail level if it is priced at the MSRP? [1]

(c)What is the initial contribution margin for the entire marketing channel if the product is priced at the MSRP to consumers? [1]

(d) What is the volume hurdle associated with a 15-percent-off sale at the retail level that will leave the overall marketing channel more profitable? [1]

(e) What decrease in manufacturer price to the retailer would deliver the same volume hurdle to both the manufacturer and the retailer under this scenario? [5]