Marketing Scenario B: You are assistant merchandising manager for Walmart de Mexico. You are asked to substitute for the merchandise manager who was called to solve a problem from a Chinese supplier. Hence, you must evaluate the following deal sheet offer as a potential product addition to your merchandise mix. If purchased, you will advertise the item next week. The offer is: $40.00 Price (List) Mfr. Discounts (Offered) Trade Display Allowance Quantity Discount (0-15 Cases, Cases, (40.0%) (5.0%) 0.0%) 5.0%) (514 20.0%) Cash Discount (2/10, Net 30) Cooperative Ad. (If qualified, Mf. Pays you 25% of the total ad expense) The offer is made on April 30, 2020. This is now May 6. You know you have ten working days to submit your order and thirty days for the firm to pay the manufacturer. You have decided to purchase the product and intend to submit your documentation to your accounting office today. That office takes two days to process orders but forwards them to the selling vendor electronically the next day. The order you prepare includes advertising copy and an invoice showing a $600 advertising expenditure. You also place an order for 35 cases packed 12 items per case. No other discounts are taken. A merchant representative (agent) has made the sales call to you and the manufacturer pays him a five percent commission on all sales. The manufacturer's cost to produce the product is seventy five percent of his selling price to the channel of distribution. (3 Pts) What is your (retailer 's) cost per unit to purchase the item and what type of margin do your margin dollars represent? $17.77, Gross Margin $ $17.77, Contribution Margin $ O$ 6.50, Contribution Margin $ $19.62, Profit Margin $ O $13.71, Gross Margin $ QUESTION 6 3 points so From the deal sheet above, (3 Pts) You decide to set the retail price at $34.50 in your advertisement. If so, what are the margin dollars given up off List Price and the markdown % taken off the List Price? O $5.50, 16.0% Mka $5.50, 13.75% Mka $16.88, 42.2% Mka $16.88, 48.9% Mka $5.50,312% Mkd (2 Pts) If you assume that your reduced retail price will increase your sales by 200 percent, what does this tell you about your Mexican shopper? The shopper is price elastic. The buyer understands he will be making less margin dollars than if he priced the item at the List Price O The shopper is the primary market segment buyer from the upper income buying market segment, His product is in the decline stage of the Product Life Cycle. The different discounts offered on this product constitute a "kickback or payback" to the supplier. 2 points QUESTION 8 Question 4. (2 Pts) Calculate MU S. If the MUR is 30% and the price is $25,00. Volume is 100 units. O MUC = 43.0% - MUc= 23,1% MUC53.95 0.43% 0.23% Marketing Scenario B: You are assistant merchandising manager for Walmart de Mexico. You are asked to substitute for the merchandise manager who was called to solve a problem from a Chinese supplier. Hence, you must evaluate the following deal sheet offer as a potential product addition to your merchandise mix. If purchased, you will advertise the item next week. The offer is: $40.00 Price (List) Mfr. Discounts (Offered) Trade Display Allowance Quantity Discount (0-15 Cases, Cases, (40.0%) (5.0%) 0.0%) 5.0%) (514 20.0%) Cash Discount (2/10, Net 30) Cooperative Ad. (If qualified, Mf. Pays you 25% of the total ad expense) The offer is made on April 30, 2020. This is now May 6. You know you have ten working days to submit your order and thirty days for the firm to pay the manufacturer. You have decided to purchase the product and intend to submit your documentation to your accounting office today. That office takes two days to process orders but forwards them to the selling vendor electronically the next day. The order you prepare includes advertising copy and an invoice showing a $600 advertising expenditure. You also place an order for 35 cases packed 12 items per case. No other discounts are taken. A merchant representative (agent) has made the sales call to you and the manufacturer pays him a five percent commission on all sales. The manufacturer's cost to produce the product is seventy five percent of his selling price to the channel of distribution. (3 Pts) What is your (retailer 's) cost per unit to purchase the item and what type of margin do your margin dollars represent? $17.77, Gross Margin $ $17.77, Contribution Margin $ O$ 6.50, Contribution Margin $ $19.62, Profit Margin $ O $13.71, Gross Margin $ QUESTION 6 3 points so From the deal sheet above, (3 Pts) You decide to set the retail price at $34.50 in your advertisement. If so, what are the margin dollars given up off List Price and the markdown % taken off the List Price? O $5.50, 16.0% Mka $5.50, 13.75% Mka $16.88, 42.2% Mka $16.88, 48.9% Mka $5.50,312% Mkd (2 Pts) If you assume that your reduced retail price will increase your sales by 200 percent, what does this tell you about your Mexican shopper? The shopper is price elastic. The buyer understands he will be making less margin dollars than if he priced the item at the List Price O The shopper is the primary market segment buyer from the upper income buying market segment, His product is in the decline stage of the Product Life Cycle. The different discounts offered on this product constitute a "kickback or payback" to the supplier. 2 points QUESTION 8 Question 4. (2 Pts) Calculate MU S. If the MUR is 30% and the price is $25,00. Volume is 100 units. O MUC = 43.0% - MUc= 23,1% MUC53.95 0.43% 0.23%