You are the Sales Director of Microsoft's Xbox division. Given the fact that Microsoft has some, but not many Microsoft branded/owned retail store locations, Microsoft has chosen to use marketing intermediaries including companies providing third-party logistics, warehousing, distribution, and retail sales. Distributors purchase large quantities of various Xbox products (consoles, accessories, games, bundles) from Microsoft and redistribute to retailers, using their own sales force, warehouse, and trucking capabilities. The distributor actually purchases, owns, stores, and delivers your product for you to many Xbox retailers, earning a profit on that activity. Retailers, Best Buy in this example, then resell the products, earning a profit on that activity. The value chain that you participate in has the following profile: Microsoft's Cost Of Goods $71.99 Distributors' Purchase Price $121.95 Best Buy's Purchase Price $157.75 Customer Purchase Price $189.99 Give the above cost-of-goods and purchase price details for each Xbox holiday bundle, what is Microsoft's gross margin (in both $US dollars and %), the distributor's gross margin (in both $US dollars and %), and Best Buy's mark-up (in both $US dollars and %)? How would Microsoft's gross margin rise, in both $US dollars and %, if Microsoft sold direct to the retailer, eliminating the profit of the distributor? What would be Best Buy's mark-up, in both $US dollars and %, if a reduction in the Distributor's cost-of-goods sold for each Xbox allowed the Distributor to earn the same gross margin at a reduced selling price of $151