Question: The brand manager for Ultimate Snacks, Inc. is finalizing plans to launch a new line extension of the company's popular peanut butter bites. The product

The brand manager for Ultimate Snacks, Inc. is
The brand manager for Ultimate Snacks, Inc. is finalizing plans to launch a new line extension of the company's popular peanut butter bites. The product will be sold through wholesalers who will sell to retailers for onward sale to consumers. Her team has decided on a retail price of $120 per case for the product. Wholesalers earn a margin of 25 percent on sales to retailers, and retailers earn a margin of 40 percent on the retail price. Ultimate Snacks' policy requires products to earn a margin of 65 percent on the price to wholesalers. a) What will be the cost per case to retailers? (3 pts) b) What will be the cost per case to wholesalers? (3 pts) c) What will be the wholesalers' dollar margin per unit? (3 pts) d) If 100,000 cases of the product are sold, what will be Modern Food's: i) total sales revenue? (3 pts) ii) total contribution? (3 pts)

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