1. Suppose you are the producer of a product with a manufacturer's suggested retail price of $1000. Assume that this is the actual retail price. In your distribution channel, the retailer typically demands a margin of 30% off the retail price it charges. The wholesaler demands a 20% margin on the price at which he sells to the retailer. As the manufacturer, your cost of goods sold is $400. a. What price does the retailer pay? b. What price does the wholesaler pay? с. What is the manufacturer's contribution in dollars per unit? What is the manufacturer's contribution margin?

1. Suppose you are the producer of a product with a manufacturer's suggested retail price of $1000. Assume that this is the actual retail price. In your distribution channel, the retailer typically demands a margin of 30% off the retail price it charges. The wholesaler demands a 20% margin on the price at which he sells to the retailer. As the manufacturer, your cost of goods sold is $400. a. What price does the retailer pay? b. What price does the wholesaler pay? с. What is the manufacturer's contribution in dollars per unit? What is the manufacturer's contribution margin?

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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