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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 $49.99. Lisa will not sell directly to the consumer but will use a wholesaler who will sell to a retailer (e.g., university bookstores). The retailers margin is 45%, and the wholesalers margin is 15%. The fixed cost of manufacturing the cases is $280,000 and the variable costs are $7.25 per case. Lisa is considering an advertising budget of $300,000. Miscellaneous variable costs (e.g., shipping and handling) paid by Lisas company come to $0.10 per case. Lisa has decided to use salespeople to encourage adoption by wholesalers, and the salespeople will be paid entirely by a 10% commission on the manufacturers (i.e., Lisas) selling price. The product managers salary is $75,000.
1. What is the price the manufacturer (Lisas company) charges the wholesaler?
2. What is the manufacturers (Lisas) unit margin (contribution/profit per unit excluding fixed costs) for the cases (in $)?
3. How many units must be sold to turn a profit?

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