Question: 52 Margin Analysis 30. A product is sold by a retailer to the consumer for $80. The retailer buys the product from a wholesaler for

 52 Margin Analysis 30. A product is sold by a retailer

52 Margin Analysis 30. A product is sold by a retailer to the consumer for $80. The retailer buys the product from a wholesaler for $60 and the wholesaler buys the product from the manufacturer for $30. What is the wholesale margin percentage? a)25% b)33% c)50% d)Other 31. If a six-pack of a fruit-soda sells for $6 retail and the retailer's margin is 25% and the wholesaler- distributor margin is 33.3% then what is the manufacturer's price? a)$1 b)$1.50 c)$2 d)$3 e)Other S3 Price Change Analysis 32. At a current contribution margin% of 80% how much must sales increase by for a price reduction of 6% to be worth while? By more than: a)8.1% b)9.4% c)10.3% d)11.7% e)Other 33. At a current contribution margin% of 80% how much must sales decrease by for a price increase of 6% not to be worth while? By more than: a)6.0% b)7.0% c)8.0% d)9.0% e)Other 34. Using S3 price change at a current contribution margin% of 20% how much must sales increase by for a price reduction of 6% to be worth while? By more than: a)20% b)25% c)30% d)42.9% e)Other 35. At a current contribution margin% of 20% how much must sales decrease by for a price increase of 6% not to be worth while? By more than: a)16% b)16.5% c)16.7% d)23.1% e)Other S4 Price Setting Analysis 36. A surfer making and selling surf-boards has fixed costs of $10,000 and his average variable cost

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