1. Assume you set MSRP at $5.00, and offer a retailer a 20% volume discount. That means your selling price per unit is $4.00. You also offer the retailer a promotional allowance in the amount of 10% off of your selling price. If your per unit cost is $1.08 per unit, what is your profit per unit?

   1. -$0.10

   2. $2.52

   3. $3.02

   4. $2.45