Etier Designs is producing a line of high-end silk scarves to be sold in high-end department stores. The manufacturers suggested retail price is $120 USD.

The retailer demands a 40% margin off the retail price,

The wholesaler demands a 50% margin off the price at which he sells to the retailer. What price does the wholesaler pay Etier Designs?

Etiers total cost of goods sold is $12 USD.

In the past, Etier has paid $30,000 for design consulting. Moving forward, Eiter plans to spend $30,000 in market research, $50,000 to rent production space, and an additional $100,000 on an advertising campaign.

Please answer the following:

1. What price does the retailer pay the wholesaler?

2. What price does the wholesaler pay Etier?

3. What is Etiers mark up as a percentage of its costs?

4. By what percent does the wholesaler mark-up its cost of goods sold?

5. By what percent does the retailer mark-up its cost?

6. What is total Etiers (relevant) Fixed Cost?

7. If we consider the COGS to be the total variable cost, how many units does Etier have to produce to Break Even?

8. What is Etiers Break Even in terms of (wholesale) dollars?

1. Whats is Etiers Contribution per unit in dollars?

10. What is Etiers Contribution Margin?

11. How many units would Etier have to sell to make a $50,000 profit (not just break even?