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Cost Based Mark Up Pricing Scenario: - A manufacturer of a new shampoo is planning to use several different channels of distribution, as listed below.
Cost Based Mark Up Pricing Scenario: - A manufacturer of a new shampoo is planning to use several different channels of distribution, as listed below. - Each intermediary in each of the alternative channels uses a cost-plus approach to pricing. That is, each firm takes a markup on its selling price to cover operating expenses plus profit. - The manufacturer sells the shampoo to the next member of each channel for $2.00 per 12 -ounce plastic bottle. 1. What is the retail selling price if the manufacturer sells the shampoo directly to small drugstores? A. $2.56 B. $3.17 C. \$3.49 D. $2.98 E. $3.61 2. What is the retail selling price if the manufacturer sells the shampoo directly to massmerchandisers? A. $2.59 B. $3.65 C. $3.05 D. $2.99 E. $2.82 3. What is the merchant wholesalers' price to the supermarkets? A. $3.04 B. $3.51 C. $2.27 D. $2.56 E. $2.95 4. What is the supermarkets' retail price? A.\$3.11 B. \$2.54 C. \$2.27 D. $3.36 E. $2.97
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