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Mysonic produces Prism 4 5 , its flagship brand and model of large screen TV . The total cost of producing one unit of this
Mysonic produces Prism its flagship brand and model of large screen TV The total cost of producing
one unit of this TV brand model is $ Following is the channel structure of Mysonic, with margin
chain information in the network.
Question:
What should be the retail price of Prism
The manager of Mysonic expects to experience cost fluctuations in the market and has
therefore suggested a retail price of $ Given the above margin policies and the
suggested retail price of $ what would be the cost of a Prism TV to a wholesaler?
The suggested retail price of $ makes sense with a producer cost of with the
given margin requirements?
If the unit total cost remains at $ Mysonic is considering switching to a markup on
cost policy in dealing with its wholesalers. How much will the wholesaler pay Mysonic for a unit
of Prism large screen TV with this switch to this markup policy?
Assume that Mysonic decides to adopt the markup on cost policy while the wholesalers
and retailers stick with their margin policy of and respectively. A Prism that costs
$ to produce will sell for at retail.
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