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The carrying case would be sold to the end consumer for $ 4 9 . 9 9 . Lisa will not sell directly to the
The carrying case would be sold to the end consumer for $ Lisa will not sell directly to the consumer but will use a wholesaler who will sell to a retailer eg university bookstores The retailers margin is and the wholesalers margin is The fixed cost of manufacturing the cases is $ and the variable costs are $ per case. Lisa is considering an advertising budget of $ Miscellaneous variable costs eg shipping and handling paid by Lisas company come to $ per case. Lisa has decided to use salespeople to encourage adoption by wholesalers, and the salespeople will be paid entirely by a commission on the manufacturers ie Lisas selling price. The product managers salary is $
What is the price the manufacturer Lisas company charges the wholesaler?
What is the manufacturers Lisas unit margin contributionprofit per unit excluding fixed costs for the cases in $
How many units must be sold to turn a profit?
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