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

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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

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