VECCMs $($vitamin enhanced chocolate coated marshmallows$)$ failed to gain distribution in most

health food stores, but Paul was determined to pursue his dream of marketing a good$-$tasting snack

food that would include minimum daily requirements of most vitamins and minerals. He sold them in

$160z$ resealable bags through independent grocery stores throughout the Mid$-$Atlantic. Paul's Selling

prices to wholesalers of $$1\mathrm{.}19$ a bag resulted in a contribution margin before advertising and

promotion of $32\%.$ Wholesalers sold to retailers and retailers to consumers, earning margins of $19\%$

and $50\%$ respectively. Sales are currently $880$ bags per week.

Paul is considering distributing $1$ million free standing insert $($FSI$)$ coupons for $$0\mathrm{.}20$ off the regular

price and expects to pay $$4$ per thousand for artwork and distribution. Each coupon redeemed will

cost an additional $$0\mathrm{.}03$ in processing fees.

Instead of coupons, Paul announces he will pay retailers a promotional allowance to reduce retail

prices for one week. If retailers reduce prices by $10\%,$ Paul will pay them $$0\mathrm{.}10$ per bag sold at the

reduced prices. What percentage promotional pass$-$through does this represent?

percent