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Super sells its Body Powder line to wholesalers for $6.95 per eight (8) ounce container. Promoted as a super soft body powder, Supers manufacturer suggested
Super sells its Body Powder line to wholesalers for $6.95 per eight (8) ounce container. Promoted as a super soft body powder, Supers manufacturer suggested retail selling price (MSRP) is $20.95 per eight (8) ounce container and retailers follow this pricing. Super uses an 70% cost basis markup while retailers in this channel use a 60% selling price basis markup.
If the retailer in this channel spends $25,000 promoting the Body Powder line, how many units must the retailer sell to breakeven on the promotional investment?
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