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You are a manufacturer who distributes your product through a channel of distribution that includes wholesalers, retailers and consumers. The retailer sells at a retail price of $40.00 per unit and, at that price, the retailer earns a fifty percent margin per unit sold. Retailers actually buy the product from wholesalers. You pay wholesalers a ten percent sales commission (that is, margin) on each unit sold. Finally, you want to maintain a 25% profit margin on each unit sold. What is the manufacturer's target cost per unit? $4,50 $13.50 $18.00 $20.00. QUESTION 24 You are a manufacturer who distributes your product through a channel of distribution that includes wholesalers, retailers and consumers. The retailer sells at a retail price of $40.00 per unit and, at that price, the retailer eams a fifty percent margin per unit sold. Retailers actually buy the product from wholesalers. You pay wholesalers a ten percent sales commission (that is, margin) on each unit sold. Finally, you want to maintain a 25% profit margin on each unit sold. Imagine that we decide to sell directly to the consumer (online). We project sales to remain at 1,000 units per period, Getting the website ready and the personnel to handle shipments and all would increase our unit cost by 80%. However, we would get rid of the wholesaler and the retaler What is the new contribution margin ratio per unit? 39.25% 49.25% 25.39% 22.49% 32.95% You are a manufacturer who distributes your product through a channel of distribution that includes wholesalers, retailers and consumers. The retailer sells at a retail price of $40.00 per unit and, at that price, the retailer earns a fifty percent margin per unit sold. Retailers actually buy the product from wholesalers. You pay wholesalers a ten percent sales commission (that is, margin) on each unit sold. Finally, you want to maintain a 25% profit margin on each unit sold. What is the manufacturer's target cost per unit? $4,50 $13.50 $18.00 $20.00. QUESTION 24 You are a manufacturer who distributes your product through a channel of distribution that includes wholesalers, retailers and consumers. The retailer sells at a retail price of $40.00 per unit and, at that price, the retailer eams a fifty percent margin per unit sold. Retailers actually buy the product from wholesalers. You pay wholesalers a ten percent sales commission (that is, margin) on each unit sold. Finally, you want to maintain a 25% profit margin on each unit sold. Imagine that we decide to sell directly to the consumer (online). We project sales to remain at 1,000 units per period, Getting the website ready and the personnel to handle shipments and all would increase our unit cost by 80%. However, we would get rid of the wholesaler and the retaler What is the new contribution margin ratio per unit? 39.25% 49.25% 25.39% 22.49% 32.95%
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Related Book For
Marketing Research Essentials
ISBN: 978-1118249321
8th edition
Authors: Carl McDaniel Jr., Roger Gates
Posted Date:
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