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