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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 Prism45, its flagship brand and model of large screen TV. The total cost of producing
one unit of this TV brand/ model is $2,160. Following is the channel structure of Mysonic, with margin
chain information in the network.
Question:
(1) What should be the retail price of Prism45?
(2) The manager of Mysonic expects to experience cost fluctuations in the market and has
therefore suggested a retail price of $6,000. Given the above margin policies and the
suggested retail price of $6,000, what would be the cost of a Prism45 TV to a wholesaler?
(3) The suggested retail price of $6,000 makes sense with a producer cost of __________ with the
given margin requirements?
(4)If the unit total cost remains at $2,160, Mysonic is considering switching to a 25% mark-up on
cost policy in dealing with its wholesalers. How much will the wholesaler pay Mysonic for a unit
of Prism45 large screen TV with this switch to this 25% mark-up policy?
(5) Assume that Mysonic decides to adopt the 25% mark-up on cost policy while the wholesalers
and retailers stick with their margin policy of 20% and 40%, respectively. A Prism45 that costs
$2,160 to produce will sell for ________ at retail.
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