3. From Chapter 22, Appendix 6, calculate the selling prices [$] at various channel levels considering the following two scenarios. In addition, for each scenario, calculate the manufacturers gross margin [$]. (2 pts for each calculation)

a) Consumer price = $2.43, retailer margin = 30%, distributor margin = 10%, wholesaler margin = 7% and manufacturer cost = $1.00

Distributor selling price = $ _______ = (show calculation)

Wholesaler selling price = $ _______ = (show calculation)

Manufacturer selling price = $ _______ = (show calculation)

Manufacturer gross margin = $ _______ = (show calculation)

(In this case, product flows from Mfg to Wholesaler to Distributor to Retailer to Consumer.)

b) Consumer price = $1.98, retailer margin = 25%, distributor margin = 17% and manufacturer cost = $1.00.

Distributor selling price = $ _______ = (show calculation)

Manufacturer selling price = $ _______ = (show calculation)

Manufacturer gross margin = $ _______ = (show calculation)

(In this case, product flows from Mfg to Distributor to Retailer to Consumer.)

******NOTE: Students should show their calculations as follows:-

Replace this line in each question above:

Distributor selling price = $ _______ = (show calculation)

With something like this:

Distributor Selling Price = $ 8.16 = $9.95 * (1 - .18) (not correct considering the above)

or

Distributor Selling Price = $ 8.16 = $9.95 0.18*(9.95) (same calc, algebraically)