Formulas MSP-MSRPx (1 - Volume Discount) . Per Unit Margin- MSP x (1 - Promotion Allowance) - Unit Cost Gross Margin (%)-Per Unit Margin / MSP Retail price with Mark-up-MSP Mark-up) Retail price with WSP and Mark-up WSP (1 - Mark-up) Allowance Adjusted Retail Price = Retail Price-MSP x (Promotional Allowance WSP MSP (1 - Mark-up) . Volume Discount-1- MSRP x (1- Wholesaler Mark-up) x ( - Retailer Mark-up) MSRP 1. What is the role of MSRP in your pricing decision? 2. For each brand in the following table, calculate the manufacturer's selling price (MSP), the per unit margin, and the gross margin as a percentage of MSP Brand X Brand Y MSRP Volume Discount Promotional Allowance Unit Cost MSP Per Unit Margin Gross Margin % S5.40 25% 17% S1.20 5.15 30% 20% 0.70 3 For large retailers, the MSP represents their product cost, which they will mark up to set the retail price. If the retailer has a target margin of 20%, what would the retail prices be for the brands in question 2? Brand X Retail Price Brand Y Retail Price =