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A television manufacturing company has a two tier channel comprising distributors and retailers. The company offers the following prices and schemes to its distributors and

A television manufacturing company has a two tier channel comprising distributors and retailers. The company offers the following prices and schemes to its distributors and retailers. Distributor selling price is rs 20000. Distributor scheme is 20100 retailer scheme offered by the company to retailer 1 selling 50 tvs a month is rs 100 per tv set. Retailer scheme offered by the company to retailer 2 selling 100 tvs a month is rs 500 per tv set. The tv set sells in the market for rs 20400. The cost of the tv set to company is rs 19000.

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