Question
For a consumer product, the manufacturers suggested retail price (MSRP) is $20.00. The wholesale price from the manufacturer to the retailer is $13.00. The manufacturer
For a consumer product, the manufacturers suggested retail price (MSRP) is $20.00. The wholesale price from the manufacturer to the retailer is $13.00. The manufacturer faces a marginal cost of $9.00 per unit to produce.
What is the current contribution margin for this product for the retailer if priced at the MSRP?
What is the volume hurdle associated with a $2-off sale to leave the overall value chain more profitable?
What is the volume hurdle faced by the retailer in this scenario?
What is the volume hurdle faced by the retailer in this scenario?
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