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SC Johnson distributes their OFF! Clipon product through retailers. They suggest the retailer sell each OFF! Clipon for $7.99. The retailer purchases the OFF! Clipon

SC Johnson distributes their OFF! Clipon product through retailers. They suggest the retailer sell each OFF! Clipon for $7.99. The retailer purchases the OFF! Clipon from SC Johnson for $4.99 (wholesale price) and SC Johnsons variable costs are $3.00.

a) What is SC Johnsons contribution margin?

b) What is the retailers contribution margin?

c) Determine the volume hurdle for a retailer if they decrease the retail price by 15%? Please show your calculations.

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