Quicksand has been the dream of the duo since they first met at the Boston Marathon in 2011, and because of their past successes in consulting and design, Bryce and Charlene are ready to self-finance Quicksand using their "jackpot" of savings from their respective careers.

In order to produce and promote their running shirts, the duo estimate that in the first year, they will need to spend $300,000 on advertising and $150,000 on other promotional activities. Raw material and labor expenses for each t-shirt will cost $14.50. Bryce and Charlene have decided to sell their product through a distributor rather than selling directly to specialized retail stores. They sell to the distributor for $27, which then sells to retail stores at a 25% margin. Specialized retail stores typically look for a 40% margin on running shirts. The initial investment for renting the production facility and relevant equipment will be about $120,000 and $110,000 respectively. The company also requires $40,000 for general overhead expenses. Regarding the services of the marketing firm, Bryce and Charlene agreed to pay $20,000 per quarter for one year.

Complete the following calculations (i.e., price chain) for each step in the channel of distribution for the Quicksand running shirts.

Manuf. Selling Price

Manuf. Variable cost

Manuf. Margin %

Manuf. Margin ($)

Distrib. Selling Price

Distrib. Variable cost

Distrib. Margin %

Distrib. Margin ($)