ANSWER TO THE QUESTIONS BY GIVING STEP BY STEP SOLUTION

Marketing by the Numbers Pricey Sheets Cost/King-Size Set Many luxury sheets cost less than $200 to make but sell Raw cotton for more than $500 in retail stores. Some cost even more- $28.00 consumers pay almost $3,000 for Frett'e "Tangeri Pizzo" king- Spinning/weaving/dyeing $12.00 size luxury linens. The creators of a new brand of luxury linens, Cut/sew/finishing $10.00 called Boll & Branch, have entered this market and are deter- Material transportation $ 3.00 mining the price at which to sell their sheets directly to con- Factory fee $16.00 sumers online. They want to price their sheets lower than most brands but still want to earn an adequate margin on sales. Inspection and import fees $14.00 The sheets come in a luxurious box that can be reused to Ocean freight/insurance $ 5.00 store lingerie, jewelry, or other keepsakes. The Boll & Branch Warehousing $ 8.00 brand touts fair-trade practices when sourcing its high-grade Packaging some meowsne afsme Were $15.00 long-staple organic cotton from India. Given the cost informa- Promotion $30.00 tion below, refer to Appendix 2: Marketing by the Numbers to answer the following questions.neil to zero put onat Customer shipping of aldaisomoore $15.00 10-10 Given the cost per king-size sheet set above and the consumer price you calculated in the previous assuming the manufacturer has total fixed costs of question, at what price must it sell the product to a wholesaler who then sells it to retailers? Assume $500,000 and estimates first year sales will be 50,000 wholesalers desire a 10 percent margin and retail- sets, determine the price to consumers if the com- ers get a 20 percent margin, both based on their pany desires a 40 percent margin on sales. (AACSB: vis respective selling prices. (AACSB: Communication; Communication; Analytical Reasoning) Analytical Reasoning) 10-11 If the company decides to sell through retailers in- stead of directly to consumers online, to maintain