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I'm not sure how to solve this. Can someone help me? 3) Your company manufactures candy that sells in small bags through pharmacies like Walgreens.
I'm not sure how to solve this. Can someone help me?
3) Your company manufactures candy that sells in small bags through pharmacies like Walgreens. You sell to a wholesaler who then sells to Walgreens. Demand for your candy is 1,000,000 bags per year through Walgreens. Your manufacturing cost is $.50 per bag and Walgreens sells each bag for $2.00. Walgreens has a contribution margin of 25% and the wholesaler has a contribution margin of 20%. a. What is your selling price to the wholesaler and your contribution margin? b. If you decided to add a manufacturer coupon with a face value of $.20 and units -1 you expected the redemption rate to be 1 in 10, how many additional units would you have to sell to cover the coupon next year? ens pot (0. 20 Would the wholesaler be willing to cover half of the cost of the coupon if the coupon was expected to increase the number of units sold next year by 100,000 additional unitsStep by Step Solution
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