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Assume that customers have to pay the full retail price of the service up front (i.e., $17/month for 24 months), and that the installation fee
Assume that customers have to pay the full retail price of the service up front (i.e., $17/month for 24 months), and that the installation fee is $35, which will have to be paid at the same time. Furthermore, assume that retailers buy FordPass Smartlink and the associated services from Ford for $265.50. What is the contribution margin (in %) for the retailer? Please make your calculations clear. Answers without proper quantitative justifications will not receive any marks.
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