Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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%.

  1. Create a Value Chain for the shirts by filling in the blanks

Consumer Price

$25

Dicks Purchase Price

Dicks Margin

Distributor Purchase Price

Distributor Margin

Big Als Gross Margin ($)

Big Als Gross Margin (%)

Big Als Contribution Margin ($)

Big Als Contribution Margin (%)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Theory And Practice Of Investment Management

Authors: Frank J Fabozzi, Harry M Markowitz

2nd Edition

0470929901, 9780470929902

More Books

Students also viewed these Finance questions

Question

3. Applying: Using a general concept to solve a particular problem.

Answered: 1 week ago

Question

Summarise the scope of HRM and the key HRM functions

Answered: 1 week ago