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Scenarlo: Gourmet's Choice confectionary company wants to design and implement a price-off consumer promotion at Sobey's to support the sales of its 350g boxes of
Scenarlo: "Gourmet's Choice" confectionary company wants to design and implement a price-off consumer promotion at Sobey's to support the sales of its 350g boxes of chocolate-covered almonds. It will support Sobey's in this promotion by offering an off- invoice allowance. The Sobey's merchant (category buyer) has made it very clear to "Gourmet's Choice" that Sobey's needs to maintain the same percentage gross margin when the candies are on sale as when they are sold at regular retail price. What off-invoice allowance (expressed in dollars and cents per 350g box) must "Gourmet's Choice" provide to Sobey's to support the $2.00 consumer saving and keep Sobey's gross margin consistent at the same time? Please show your calculations in the space below
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