A distribution channel for the sale of imported Italian leather shoes includes a manufacturer, a distributor...
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A distribution channel for the sale of imported Italian leather shoes includes a manufacturer, a distributor and a retailer. The retailer sells the shoes to his consumers for $123 a pair, earning a margin of 22%. The distributor buys the product directly from the manufacturer for $62. The manufacturer realizes a 64% margin when selling to the distributor. If the retailer must maintain a margin of at least 12% on every pair of shoes sold and believes the retail customer won't pay more than the current retail price, what is the most the retailer would be willing to pay the distributor for shoes? 0.00 dollars A distribution channel for the sale of imported Italian leather shoes includes a manufacturer, a distributor and a retailer. The retailer sells the shoes to his consumers for $123 a pair, earning a margin of 22%. The distributor buys the product directly from the manufacturer for $62. The manufacturer realizes a 64% margin when selling to the distributor. If the retailer must maintain a margin of at least 12% on every pair of shoes sold and believes the retail customer won't pay more than the current retail price, what is the most the retailer would be willing to pay the distributor for shoes? 0.00 dollars
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Let X be the maximum price that the retailer is willing to pay to the distributor for shoes The reta... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
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