Question
Consider the following information about of one Sony's channels (and keep in mind that sales minus cost of goods sold results in $ gross return):
Consider the following information about of one Sony's channels (and keep in mind that sales minus cost of goods sold results in $ gross return):
- Sony's selling price (to its wholesalers) on a 60" HD television = $800
- Sony's wholesalers in this channel set their wholesale price such that they receive a Margin of 20% on Sony 60" televisions
- Sony's retail dealers, which purchase their Sony televisions through wholesalers, set their retail price such that they charge a Markup of 80% on Sony 60" televisions
Find:
(1) The retail price at which a Sony 60" television is sold in this channel. $________
(2) The $ gross return per unit received by the retail dealers in this channel. $_________
(3) The $ gross return per unit received by the wholesalers in this channel. $ ________
(4) The Total Revenue per unit for Sony in this channel (Hint: this is given above). $_________
Please show your work to receive full credit!
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