Cannabis Pricing Worksheet SsenGrow, Inc. grows cannabis indoors in California. They specialize in selling flowers which they sell to cannabis distributors who then sell to various dispensaries. For this quarter, Gussa Granca operational cost per pound of flower is $1020. They use a cannabis agent to sell to the different distributors in the state. Her commission is 10% of the selling price to the distributer. She gets 10% and GreenGeox gets 90% of the selling price. GreenGrays, target gross profit margin percentage is 50% from the net selling price (Price to distributor less 10% agent fee) after paying the cannabis agent. Their fixed costs are $175,000 per quarter. Because of GreenGWCs solid reputation, its distributors will purchase and pay for the product within 30 days instead of waiting for the dispensaries to pay them first. Distributors need to earn a gross profit margin of 10% to carry the product. They price the product accordingly. In the retail market, 1/8 of an ounce of Green Grow flower sells for $35.00 in California. Most retailers do not change the price when there are small changes in their costs because consumers have strong reference prices. Retailers will adjust their price if their gross profit margin percentage drops below 40% Please answer the following questions. Please show all your work (you can submit an Excel worksheet with your answers, but use formulas like [*= (B2-83782") to show your work). You can also do the work by hand, take a picture or screenshot, etc. 1. Fe dispensary, at what new cost for the Green Grey flower would the gross profit on selling 29 6s at $29.99 for 1/8 oz be equal to the profit on selling 22lbs at a price of 535 for 1/8 oz? 2. If Greso Grow decided to become a vertical marketing company by performing its own distribution and opening/acquiring dispensaries, what would be their overall gross profit percentage degree based just upon the Green Grewe initial cost per pound and the final selling price to consumers? This is within the range that Holistic earns on its own products from seed to sale Cannabis Pricing Worksheet SsenGrow, Inc. grows cannabis indoors in California. They specialize in selling flowers which they sell to cannabis distributors who then sell to various dispensaries. For this quarter, Gussa Granca operational cost per pound of flower is $1020. They use a cannabis agent to sell to the different distributors in the state. Her commission is 10% of the selling price to the distributer. She gets 10% and GreenGeox gets 90% of the selling price. GreenGrays, target gross profit margin percentage is 50% from the net selling price (Price to distributor less 10% agent fee) after paying the cannabis agent. Their fixed costs are $175,000 per quarter. Because of GreenGWCs solid reputation, its distributors will purchase and pay for the product within 30 days instead of waiting for the dispensaries to pay them first. Distributors need to earn a gross profit margin of 10% to carry the product. They price the product accordingly. In the retail market, 1/8 of an ounce of Green Grow flower sells for $35.00 in California. Most retailers do not change the price when there are small changes in their costs because consumers have strong reference prices. Retailers will adjust their price if their gross profit margin percentage drops below 40% Please answer the following questions. Please show all your work (you can submit an Excel worksheet with your answers, but use formulas like [*= (B2-83782") to show your work). You can also do the work by hand, take a picture or screenshot, etc. 1. Fe dispensary, at what new cost for the Green Grey flower would the gross profit on selling 29 6s at $29.99 for 1/8 oz be equal to the profit on selling 22lbs at a price of 535 for 1/8 oz? 2. If Greso Grow decided to become a vertical marketing company by performing its own distribution and opening/acquiring dispensaries, what would be their overall gross profit percentage degree based just upon the Green Grewe initial cost per pound and the final selling price to consumers? This is within the range that Holistic earns on its own products from seed to sale
