Question: Last year, consumers spent $ 1 , 2 0 0 , 0 0 0 on a product category in which On - the - Spot

Last year, consumers spent $1,200,000 on a product category in which On-the-Spot is one brand. On-the-Spot costs a retailer $2 and normal retail margins for this type of product are 33.3%. On-the-Spots manufacturer is about to launch a nationwide advertising campaign that will bring its fixed costs up to $200,000. Wholesaler margins are 25% and mfr. margins are 66.7%. Margins are calculated as the percentage of each companys own selling price. Assume the retail price is the same for all the products in this category.

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