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A television manufacturing company has a two-tier channel comprising distributors and retailers. (Manufacturer - Distributor - RetailerCustomer), The company offers the following prices and schemes
A television manufacturing company has a two-tier channel comprising distributors and retailers. (Manufacturer - Distributor - RetailerCustomer), The company offers the following prices and schemes to its distributors and retailers. Distributor Billing price (from company to distributor) = Rs. 15,000 Retailer Billing Price (from distributor to retailer) = Rs. 15,100 Distributor Scheme (offered by the company to the distributor) = Rs. 200 per TV set. Retailer Scheme offered by the company to retailer 1 selling 50 TVs a month = Rs. 100 per TV Set Retailer Scheme offered by the company to retailer2 selling 100 TVs a month = Rs. 300 per TV set The TV set sells in the market for Rs. 15,100 . The cost of the TV set to the company is Rs 14000. Find the following a. The Company Retention, Landed Costs for Retailer1 and Retailer2 and Distributor Landed Costs. Assume that the Qistributor would qualify for the scheme. Please note that company retention would have two answers based on the retailer to whom sale is being made. (4) b. The margins (in Rs.) made by the company, retailer1, retailer2, and the distributor. (4) c. A significant difference in the unit scheme amounts could lead to market disturbances. Comment in the light of the above example
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