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Assume that a company is selling a $ 9 5 0 . 0 0 mattress with a $ 5 0 . 0 0 promo code.

Assume that a company is selling a $ 950.00 mattress with a $ 50.00 promo code. What is the margin that company makes when it sells such a mattress (consider COGS, delivery cost and cost of returned products)? Use the following data to carry out your analysis
-Cost of Goods Sold (COGS) is 60%. This is in line with other Big Mattress firms (62%, Exhibit 2).
- On outbound delivery, assume the box costs $5 each, and on average, the UPS charge is $ 70.00 for a king mattress delivery.
- Return rate on mattresses is 5%. Cost to of disposal or arranging donation of mattress is $ 25.00.

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