Question 1

Shannons has developed a super-premium craft beer to be marketed as Shannons Irish Stout. The cost of production (brewing, canning, etc.) is about $4.00 per six pack. If Shannons needs a 12% margin, what will Shannons price per six pack be to its distributor, Miller of Denton? Assume the margin is expressed as a markup based on cost. Round your answer to the nearest penny. Do not include the dollar sign.

Question 2

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Shannons Brewery has developed a super-premium craft beer to be marketed as Shannons Irish Stout. The cost of production (brewing, canning, etc.) is about $4.02 per six pack. If Shannons needs a 13% margin what will Shannons price per six pack be to its distributor, Miller of Denton? Assume the margin is expressed as a markup based on selling price. Compute your answer to the nearest penny.

Question 3

Shannons craft beers are sold via a three tier distribution channel, consisting of its brewery, a distributor (Miller Distributing) and the retailer. At the retail level, a six pack of its craft beer sells for about $12.00. If the typical retailer demands a 50% markup based on selling price and the distributor also wants a 36% markup based on selling price, what will be the maximum that Shannons can charge the distributor for a six pack? Compute your answer to the nearest penny.

Question 4

Shannons has developed a super-premium craft beer to be marketed as Shannons Irish Stout. The cost of production (brewing, canning, etc.) is about $4.00 per six pack. If Shannons needs a 10% margin, the distributor needs 40% and the retailer needs 55%, what will be the likely selling price suggested by Shannons to consumers? Assume all margins are expressed as markups based on selling price. Compute your answer to the nearest penny.