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2. Owing to greater consumer concern about sugar in prepared foods, a Canadian syrup r formulated a new product: Slim Maple Syrup. The product was

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2. Owing to greater consumer concern about sugar in prepared foods, a Canadian syrup r formulated a new product: Slim Maple Syrup. The product was basically regular maple syrup with less than half the sugar, but with added cinnamon and brown sugar flavouring. people tried it. The manufacturer planned on selling the maple syrup in a 250-millilitre squeezable plastic bottle. Test marketing indicated that consumers would be willing to pay somewhere between $4.29 and $5.29 per bottle. Recognizing that it had to allow reasonable margins for wholesalers and retailers, the manufacturer finally decided ona suggested price to consumers of $4.89 per bottle and trade discounts of 20/15%, with the expectation that wholesalers would pass along the 20% to retailers and keep the 15% discount for themselves. The variable cost of producing slim Maple Syrup was $2.96 per bottle, and it was packaged 24 bottles per case. Fixed costs that the manufacturer allocated for this product totalled $55 000. a. What is the manufacturer's breakeven volume in cases? b. What is the manufacturer's breakeven volume in dollars? Focus groups indicated that the product would be very popular once c. For wholesalers, what is the contribution margin as a percentage of cost? d. For retailers, what is the contribution margin as a percentage of cost

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