A manufacturer of watches incurs a production cost of $10 per watch and sets a wholesale price of $20 per watch. During a regular week, the retailer sets a price of $35 per watch and sells 1000 watches. Suppose the manufacturer adopts a promotion in which it gives the retailer $8000 in exchange for putting its watches in a display case at the front of the store (while keeping its wholesale price at $20 per watch). During the promotion, the retailer sets a price of $30 per watch and sells a total of 1,374 watches. What is the Pass Through Rate of this promotion?".

Answer rating: 100% (QA)

Answer Step 1 The passthrough rate refers to the rate at which the goods are funded by the tr... View the full answer