Two retailers (one large and one small) do business with August Silk. This manufacture produces sweaters and sweater sets.Both retailers are planning to purchase the Crew-Neck Cardigan below:

Independent Retailer:This retailer has a single location. They have the ability to buy up to 24 units (pieces) in each of four (4) colors.

Large retailer:This retailer has 1200 locations and the capacity to buy an average of 24 units (pieces) in each of six (6) colors per store!

The manufacturer’s cost to the retailer (MSRP) for the cardigan in $16.00 *

4.The retailer with the single location was offered no discount and paid the full $16.00 per unit. Determine Total cost of their purchase order. Show all steps.

5.The manufacturer with 1200 locations was offered a 20.0% volume discount. Determine the unit cost (with the 20.0% discount). Then, determine the total cost of their purchase order. BOTH retailers determined that the appropriate unit retail price is the same. The original retail price will be $18.00.

6.Use this unit Retail Price and the unit Cost you calculated (point 4 and 5 above) to determine the MU% that each retailer will achieve on their Purchase Order.