Question
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
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 (%s) Performance Requirement Promotional Allowances 5.0 Off-shelf Display Trade Discount 30.0 Retailer Cooperative Advertising $1,500 Advertising Copy Quantity Discount 10.0 Less than 10 cases 15.0 10-25 cases 20.0 25 plus cases Cash Discount 2/10, Net 30 Proper Payment 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 June12th. 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 %?
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