A) Draw Multi - Channel distribution system for Intensive Distribution. 

B) How many channel levels can this distribution system support?

Assumptions: 

Product Cost = $2.00 Producer Gross Margin 50 %

 Level 1 = End User (Customer)

 Level 2 Mark-up = 30 % (1 Intermediary)

Level 3 Mark-up = 25 % (2 Intermediaries)

Level 4+ Mark-up = 20 % (3 Intermediaries)

End User Market Price=$ 10.00