Question: SC Johnson distributes their OFF! Clip on product through various retail distribution channels (retailers). Based on current pricing strategy, they recommend each retailer sell each

SC Johnson distributes their OFF! Clip on product through various retail distribution channels (retailers). Based on current pricing strategy, they recommend each retailer sell each OFF! Clip on for $7.99. Each retailer purchases the OFF! Clip-on from SC Johnson for $3.99 (wholesale price) and SC Johnson's variable costs are $2.07. One of the retailer's is considering an in-store price promotion to stimulate greater demand for the OFF! Clip on product. This retailer wants to calculate what the increase in demand will need to be if they apply a 15% promotional discount. Based on this information, using the volume hurdle formula, calculate what volume hurdle % the retailer must achieve to break-even with this promotion.

50.90% 66.80% 42.80% 66.80%

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