Question: Scenario : Two retailers (one large and one small) do business with August Silk.This manufacturer produces sweaters and sweater sets. Both retailers are planning to
Scenario: Two retailers (one large and one small) do business with August Silk.This manufacturer produces sweaters and sweater sets. Both retailers are planning to purchase the Crew-Neck Cardigan.
Independent retailer: This retailer has a single location (one door). They have the ability to buy up to 24 units (pieces) in each of four (4) colors.
1. Calculate the total number of units the independent retailer can purchase for their single location. Be sure to include all steps.
Large retailer: This retailer has 1200 locations (doors) and the capacity to buy an average of 24 units (pieces) in each of eight (8) colors per door.
2. Calculate the total number of units each door will receive. You must include all steps.
3. Calculate the total number of units the large retailer can purchase. You must include all steps.
The manufacturer's cost to the retailer (the "Line Price") for the cardigan is $16.00.
4. The retailer with the single location was offered no discount and paid the full $16.00 per unit. Determine total cost of their purchase order.
5. The manufacturer with 1200 locations was offered a 30% discount. Determine the unit cost (with 30% discount). Then, determine the total cost of their purchase order.
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