Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

VECCMS (vitamin enhanced chocolate coated marshmallows) failed to gain distribution in most health food stores, but Paul was determined to pursue his dream of

image text in transcribed

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 16oz resealable bags through independent grocery stores throughout the Mid-Atlantic. Paul's Selling prices to wholesalers of $1.14 a bag resulted in a contribution margin before advertising and promotion of 33%. Wholesalers sold to retailers and retailers to consumers, earning margins of 24% and 50% respectively. Sales are currently 1,500 bags per week. Paul is considering distributing 1 million free standing insert (FSI) coupons for $0.20 off the regular price and expects to pay $4 per thousand for artwork and distribution. Each coupon redeemed will cost an additional $0.03 in processing fees. ... I can't get enough of these VECCMs!!! Yum! 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 $0.10 per bag sold at the reduced prices. What percentage promotional pass-through does this represent? PS3 0% percent 1 2 3 4 5 6 7 SUBMIT ANSWER EXIT CALCULATED VARIABLES: coupcost = $0.43 tcost = $4,000 rprice = $3.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Construction accounting and financial management

Authors: Steven j. Peterson

2nd Edition

135017114, 978-0135017111

Students also viewed these Accounting questions

Question

Where do emotions come from? What function do they serve?

Answered: 1 week ago