Question: 3. From Chapter 6, in the margins analysis section, calculate the selling prices [$] at various channel levels considering the following two scenarios. In addition,

 3. From Chapter 6, in the "margins analysis" section, calculate the

3. From Chapter 6, in the "margins analysis" section, calculate the selling prices [$] at various channel levels considering the following two scenarios. In addition, for each scenario, calculate the manufacturer's gross margin ($). (10 pts total) 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)

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