Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following situation. Tricon Piping Systems manufactures small diameter potable polyethylene water pipe and achieves distribution primarily through plumbing wholesalers. The firm also sells

Consider the following situation. Tricon Piping Systems manufactures small diameter potable polyethylene water pipe and achieves distribution primarily through plumbing wholesalers. The firm also sells directly to large construction companies, often creating friction with the plumbing wholesalers. Because there are several manufacturers who produce to the same specifications, price competition is often intense. The salesperson for Tricon recently offered a price concession to capture an order. Here are the specifics. The salesperson bid a job at $14,275 (list price). Tricon endeavors to sell at list price, and enjoys a 39% gross margin on the pipe in question at list price. In order to gain the "business" and to secure her commission, the salesperson offered the customer a 14% price discount. Calculate the percent change (+/-) in gross margin. Report your answer as a percentage and round to the nearest percent.

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

Corporate Treasury And Cash Management

Authors: Robert Cooper

1st Edition

1349512699, 9781349512690

More Books

Students also viewed these Finance questions