Question
Big Als Athletic Apparel annually sells 20,000 University of Florida branded cotton T-shirts through distributors who then sell the shirts for $15 to retailers like
Big Als Athletic Apparel annually sells 20,000 University of Florida branded cotton T-shirts through distributors who then sell the shirts for $15 to retailers like Dicks Sporting Goods who then sell them on to consumers for $25 each. Big Als costs of goods are $5 per shirt and they are required to pay a licensing fee to UF for $1 for every shirt that they sell via distributors. This fee is only charged on those shirts sold to the distributors. The distributors margins are 20%.
- Create a Value Chain for the shirts by filling in the blanks
Consumer Price | $25 |
Dicks Purchase Price |
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Dicks Margin |
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Distributor Purchase Price |
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Distributor Margin |
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Big Als Gross Margin ($) |
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Big Als Gross Margin (%) |
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Big Als Contribution Margin ($) |
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Big Als Contribution Margin (%) |
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