Question: Given the following outlines the margin structure for Company A through the channel of distribution: Cost/Container Retailer Price to Consumer (MSRP) $60.00 Retailers' Margin 15%

Given the following outlines the margin structure for Company A through the channel of distribution: Cost/Container Retailer Price to Consumer (MSRP) $60.00 Retailers' Margin 15% Retailers' Gross Profit $9.00 Wholesalers' Price to Retailer $51.00 Wholesalers' Margin 20% Wholesalers' Gross Profit $10.20 Company A's Price to Wholesaler $40.80 Company A's Gross Margin 36% Company A's Gross Profit $14.688

Questions:

1. What is the economic value in use of Company A over a two-year period ?

2. What is the retailers lost gross profit over two years per customer?

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