Answer all three of the following questions (including all parts of 1, 2, and 3).

1. If the price to the end customer for a product is $240, what is the manufacturer's cost to produce if the manufacturer's markup is 35%, the wholesaler's markup is 50%, and the retailer's markup is 200%? (3 pts.)
2. Describe and explain the logo being used on the floor at the left hand entrance to the Ellensburg Safeway. Why is it at this particular entrance to the Safeway and not at the other entrance? In other words, how is this adding to customer value so that it is worth the expense? (2 pts.)
3. Why are floral, bakery, meat, deli, and produce departments on the perimeter of the Ellensburg Safeway with the wide aisles and better lighting? In other words, why are these departments receiving special treatment? (1 pt.)

1. Answer all three of the following questions (including all parts of 1, 2, and 3).
2. If the cost to produce is $275, what is the price to the end customer in a traditional distribution channel, if the markups are 40% at the manufacturer level, 75% at the wholesale level, and 150% at the retail level? (3 pts.)
3. How doeshorizontal integrationat the retail level give an opportunity to a retailer to become the channel leader? (2 pts.)
4. How doesvertical integrationfrom the retail to the wholesale level allow an intermediary in the marketing channel to offer lower prices to its customers? (1 pt.)