Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Application A. You are the manufacturer of Supertron. Your Suggested Unit Retail Price is $150.00. Your profit margin is 25.0% and you are offering the

image text in transcribed
Application A. You are the manufacturer of Supertron. Your Suggested Unit Retail Price is $150.00. Your profit margin is 25.0% and you are offering the following incentives to the retail trade sector to encourage them to sell your product. The retailer can qualify for: Incentives Discounts (%) Performance Requirement Promotional Allowances Trade Discount Cooperative Advertising Quantity Discount 5.0 30.0 $1,500 10.0 15.0 20.0 2/10, Net 30 Off-shelf Display Retailer Advertising Copy Less than 10 cases 10-25 cases 25 plus cases Proper Payment Cash Discount You extended your offer to the retailer on June 1, 2018. You received confirmation of her order on June 8th and payment was received on June 12th. She has provided you with her advertising copy and a picture of her display. Finally, her order is for thirty cases. A case contains twelve units. Your wholesaler qualifies for a ten percent per unit sales commission. If you are the retailer: a. Given the $150 Suggested Retail and the discounts you qualify for and accept, what is your cost per unit purchase price? b. Based on your calculations in "a" above, what are the total Gross Margin Dollars you would from receive from this deal and what is your Gross Margin %? c. What is the Manufacturer's price to the Wholesaler? retailer sets her retail price at S125.00 per unit, what are her Markup a Cost and Markup @ Retail Percentages, given the cost she paid to purchase the item

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Multifamily Real Estate Investing

Authors: Francis Musau Cima Cemap

1st Edition

979-8405603179

More Books

Students also viewed these Finance questions