Question
5. This is a calculation question. Please use the numbers and information from the case. Due to company confidentiality, the following numbers are provided as
5. This is a calculation question. Please use the numbers and information from the case. Due to company confidentiality, the following numbers are provided as assumptions only for Casper: (9 points) o Cost to produce one unit = 60% of final revenue/sale o Outbound delivery = $75 for king ($5 cardboard box + $70 UPS) o Return rate = 5% o Disposal cost per returned unit = $25 o Assuming that all customers are currently using the $50 coupon/promotion and there are no other unit costs other than those mentioned above, what is the expected gross profit of selling one king-sized mattress for Casper? Please show your calculations.
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