Question: Create a pocket price waterfall for Creative Toy Manufacturing s CTM
Create a pocket price waterfall for Creative Toy Manufacturing’s (CTM) new electric yo-yo. The list price is $5.50 each with a minimum order of 12 dozen. The standard dealer discount (off invoice) is 50% and the order discount is 3% for orders of more than 20 dozen. There is a special promotion of $0.10 each off invoice. The payment terms are 2/10 net 30. Because CTM is encouraging customers to advertise the electric yo-yo, there is a 5% cooperative advertising allowance for dealers. Customers are being offered a rebate of $0.50. What is the pocket price for CTM?
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