After calculating the cost of goods sold, the company has determined that the cost per 8 ounce
Fantastic news! We've Found the answer you've been seeking!
Question:
After calculating the cost of goods sold, the company has determined that the cost per 8 ounce bag of treats is approximately $2.97. The company desires a 40 percent contribution margin on each package sold. They also know that most wholesalers in this industry use a 32% mark-up and many retailers maintain a 25% mark-up as well. Following this channel and based solely on the calculations, what will be the price that the normal retailer will charge for the product? Reflecting on the psychological aspects of pricing and specific pricing tactics theories, what would your final price recommendation be?
Related Book For
Forensic Accounting
ISBN: 978-0133050479
1st Edition
Authors: Robert Rufus, Laura Miller, William Hahn
Posted Date: