1)Kodak sells Gold Plus through retailers. The retail price for Kodak Gold Plus is $3.49 and Kodak's per unit revenue is $2.79. Calculate the retailer's margin and markup as a percentage.

a.Retail margin % age (3 pts.)

b.Retail Markup % age (3 pts.)

2)What is Kodak's cost per unit for the Gold Plus product? (6 pts)

3)How much incremental sales (by %) is required to break even given the retail price decrease by 15%, assuming no reaction from competition and collaborators? (14 pts)

4)Based on the results you get from question 3), do you think cutting retail price by 15% is a good strategy for Kodak? Why? (6 pt.)