Question: Question 5 (18 marks) SC Johnson distributes their OFF! Clipon product through retailers. Based on current pricing strategy, they recommend each retailer sell each OFF!

Question 5 (18 marks)

SC Johnson distributes their OFF! Clipon product through retailers.

Based on current pricing strategy, they recommend each retailer sell each OFF! Clipon for $8.99. Each retailer purchases the OFF! Clipon from SC Johnson for $4.00 (wholesale price) and SC Johnson's variable costs are $2.07.

a)What is SC Johnson's contribution margin on the sale to the retailer? (3 marks)

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