Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. You have just completed a year-long test market for a product to be commercialized. A strategic adjustment was made during the test. Initial Six

2. You have just completed a year-long test market for a product to be commercialized. A strategic adjustment was made during the test. Initial Six Months Last Six Months Price Units Sold Price Units Sold $40.00 20,000 $50.00 18,000 Given these data, the best use of these data would be to: a. Calculate Market Share d. Calculate Return on Investment b. Calculate Financial Payback e. Calculate Price Elasticity c. Calculate Gross Margin In the space below, show the formula and calculation you would use to justify your answer to 2a above. Application A. You are the manufacturer of Supertron. Your Suggested Unit Retail Price is $150.00. Your profit margin is 25.0% and you are offering the following incentives to the retail trade sector to encourage them to sell your product. The retailer can qualify for: Incentives Discounts (%s) Performance Requirement Promotional Allowances 5.0 Off-shelf Display Trade Discount 30.0 Retailer Cooperative Advertising $1,500 Advertising Copy Quantity Discount 10.0 Less than 10 cases 15.0 10-25 cases 20.0 25 plus cases Cash Discount 2/10, Net 30 Proper Payment You extended your offer to the retailer on June 1, 2018. You received confirmation of her order on June 8th and payment was received on June12th. She has provided you with her advertising copy and a picture of her display. Finally, her order is for thirty cases. A case contains twelve units. Your wholesaler qualifies for a ten percent per unit sales commission. If you are the retailer: a. Given the $150 Suggested Retail and the discounts you qualify for and accept, what is your cost per unit purchase price? b. Based on your calculations in a above, what are the total Gross Margin Dollars you would from receive from this deal and what is your Gross Margin %? c. What is the Manufacturers price to the Wholesaler? d. If the retailer sets her retail price at $125.00 per unit, what are her Markup @Cost and Markup @ Retail Percentages, given the cost she paid to purchase the item?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Budgeting A Comprehensive Guide

Authors: Steven M. Bragg

6th Edition

1642211079, 978-1642211078

More Books

Students also viewed these Accounting questions

Question

What is the difference between a mode and a norm?

Answered: 1 week ago

Question

What is the median loan amount?

Answered: 1 week ago