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Please show work, thank you 3. (30%) Paleo Snacks Inc. sells its Vegan-Paleo Chips product to consumers through a distribution channel that consists of distributors
Please show work, thank you
3. (30%) Paleo Snacks Inc. sells its Vegan-Paleo Chips product to consumers through a distribution channel that consists of distributors (wholesalers) and retailers. The company has decided to set a margin of 30% on all its products. Retailers' margins in the industry are typically 35%, and distributors' margins average 20%. The company wants the retail price of the product to be $15. Answer the questions below. (a) Based on the information provided, fill in the missing numbers in the price chain below, including (as the last step) Paleo Snacks' cost: $15.00 Retailer's price to consumers ($) Retailer's margin (%) Retailer's margin ($) Retailer's cost ($) Distributor's price to retailers ($) Distributor's margin (%) Distributor's margin ($) Distributor's cost ($) Paleo Snacks' price to distributors ($) Paleo Snacks' margin (%) Paleo Snacks' margin ($) Paleo Snacks' cost ($) (b) Paleo Snacks' marketing agency has proposed a new promotional campaign, and the CEO is considering raising the company's margin to 40% in order to fund the campaign. Assuming that Paleo Snacks' cost is what you calculated above, and that the distributor and retailer margins remain the same, fill in the missing numbers below, including (as the last step) the new retailer's price to consumers. + Retailer's price to consumers ($) Retailer's margin (%) Retailer's margin ($) Retailer's cost ($) Distributor's price to retailers ($) Distributor's margin (%) Distributor's margin ($) Distributor's cost ($) Paleo Snacks' price to distributors ($) Paleo Snacks' margin (%) Paleo Snacks' margin ($) Paleo Snacks' cost ($)Step by Step Solution
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