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Section A,B,&C 2. Suppose a marketer of wheel chair, Easy Wheel, Inc., is a new company located in Huntington, West Virginia, has rented a factory

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2. Suppose a marketer of wheel chair, Easy Wheel, Inc., is a new company located in Huntington, West Virginia, has rented a factory in Thailand to manufacture wheel chairs to be marketed to Thai customers. The company's planned production is 40,000 chairs annually. The venture capitalists (from USA and Thailand) had invested $3,000,000 in the company, with an expected for factory building is $500,000, annual executive (in Thailand) salaries are $1,000,000. Raw material per wheel chair costs $30.00 and assembling of a wheel chair costs $15.00 per unit. The company plans to manufacture 50,000 wheel chairs in 2019. The channel of distribution for chairs is as follows: t at 15% in 2005, Annual lease (rent) Easy Wheel Wholesale Medical Supplicr Retailers Final consumers (USA) (Thailand) (Thailand) (Thailand) The wholesale medical suppliers charge 15% markup to retailers, whereas retailers use 10% markup (a) At what price should Easy Wheel sell its wheel chairs to wholesale medical suppliers? You must show your calculations. (b) What will be the price of wheel chair paid by final consumers? You must show your calculations. (c) Suppose, in a given year, Easy Wheel manufactures and sells 20,000 wheel chairs. How much profit or loss would Easy Wheel make? Use fixed and variable costs as given above. You must show your calculations

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