Please use the following information to answer the next three questions, Q14- Q16 Wrigley's Spearmint Gum retail price point is 51.00. They sell the gum to grocery stores via a distributor which takes a 20% margin. Wrigley's total variable costs on the bars are 3.20. Its cost of goods sold is $.15. The retailer's margin is 30% Question 14 15 pts What is Wrigley's contribution for each gum pack sold (in dollars/cents)? $.65 None of the above O $.36 O $.21 $.41 $.80 Question 15 15 pts Wrigley's distributor decides to increase their margin from 20% to 30%. However, you do not want to go over a $1.00 retail price point, so your margin will decrease. By how much will your unit contribution decrease? O 7 cents None of the above 5 cents 10 cents 22 cents Question 16 15 pts Wrigley's plans to introduce Spearmint gel, a product similar to their base gum but with a Spearmint gel filling. It will be priced identically to the base gum. It is expected that the per unit costs of goods of the gel filling will be $.20 and total variables costs will increase to $.35 It is expected that 25% of the new Spearmint filling gum will cannibalize the existing gum line. Assume the distributor margin remains at 20% and retailer margin remains at 30%. From a purely economic standpoint, should Wrigley's sell the gum? It was a wash - the contribution will remain the same Yes We don't have enough information - we need to know the number of units being sold. No