QUESTION 1

1. Q1: Version #3

   3pts each, 3 questions, Total 9pts assigned.

   Read the Following Case for Q1.1 - Q1.3:

   A coffeemaker manufacturer has a unit cost of $15 and wishes to achieve a margin of 50% based on selling price (= manufacturers price). The manufacturer sells its products to a wholesaler who then adds a set of margin of 40% based on selling price (= wholesalers price). Then, the wholesaler sells the products to the retailer who adds a set of margin of 60% based on selling price (= retail price). In this marketing channel system, the manufacturer never sells its product directly to the retailer.

   Tips for Solutions: Use Mark-up Pricing formula. The unit cost for the manufacturer is not equal to the unit cost for the wholesaler. The unit cost for the wholesaler is not equal to the unit cost for the retailer.

   1.1: Determine the manufacturers price charged to the wholesaler.

   1.2: Determine the wholesalers price charged to the retailer.

   1.3: Determine the retail price charged to the consumers.