Consider the following channel of distribution: Manufacturer selling to the retailer. The manufacturer suggested retail price...

 

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Consider the following channel of distribution: Manufacturer selling to the retailer. The manufacturer suggested retail price (MSRP) is $320. The manufacturer intends to give the retailer a margin of 40%. The manufacturer has an advertising cost of $3000, rent of $250 and utilities of $100. In addition, the manufacturer incurs raw material costs of $50/unit and labor costs of $30/unit. Calculate the following: a. Retailer's margin in dollars b. Retailer's cost c. Manufacturer's price d. Manufacturer's CU e. Manufacturer's BEP (units) and BEP ($) Consider the following channel of distribution: Manufacturer selling to the retailer. The manufacturer suggested retail price (MSRP) is $320. The manufacturer intends to give the retailer a margin of 40%. The manufacturer has an advertising cost of $3000, rent of $250 and utilities of $100. In addition, the manufacturer incurs raw material costs of $50/unit and labor costs of $30/unit. Calculate the following: a. Retailer's margin in dollars b. Retailer's cost c. Manufacturer's price d. Manufacturer's CU e. Manufacturer's BEP (units) and BEP ($)

Answer rating: 100% (QA)

a Retailers margin in dollars Retailers margin MSRP x Retailers margin percentage Retailers margin 320 x 40 Retailers margin 128 b Retailers cost Reta... View the full answer