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Question 5 (18 marks) SC Johnson distributes their OFF! Clipon product through retailers. Based on current pricing strategy, they recommend each retailer sell each OFF!

Question 5 (18 marks)

SC Johnson distributes their OFF! Clipon product through retailers.

Based on current pricing strategy, they recommend each retailer sell each OFF! Clipon for $8.99. Each retailer purchases the OFF! Clipon from SC Johnson for $4.00 (wholesale price) and SC Johnson's variable costs are $2.07.

b)What would be the retailer's contribution margin, based on recommended retail price of $8.99 per unit? (3 marks)

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