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You are a manufacturer who distributes your product through a channel of distribution that includes wholesalers, retters and consumers. The rotor sets retail proof 54000
You are a manufacturer who distributes your product through a channel of distribution that includes wholesalers, retters and consumers. The rotor sets retail proof 54000 per unit and, at that prion, the retailer carns a fifty percent margin per unit sold Retailers actually buy the product from whaters. You pay while a ton percent sales commission that is, margin) on each unit sold. Finally, you want to maintain a 25% profit margin on enchunut sold Imagine that we decide to soll directly to the consumer (online). We project sales to remain at 1,000 units per period Getting the wordenady and the personnel to hande shipments and all would increase our unit cost by 80% However, we would get nd of the wholerator and the rotor What is the new contribution margin ratio per unit? 0 39 25% 0 40 2546 25.39% 22.49% 32.95%
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