Please fill in the blanks in the tables below. Only carry numbers to the 2nd dec
ID: 2639256 • Letter: P
Question
Please fill in the blanks in the tables below. Only carry numbers to the 2nd decimal where necessary. Use parentheses ( ) to indicate negative numbers. Complete the "Margin Chain" table first and use those answers to complete "3 Growth Options" table. When calculating the gross options, begin with calculating "gross profit" and then subtract costs/expenses to get your "profit contribution". Then, calculate "sales growth" which is a separate value and represents the estimate 1st year of sales.
Use the equations below if nesessary:
Manufacturer Cost = MSP * (1 - % Manufacturer Gross Margin)
Manufacturer Selling Price = RPP * (1 - % Distributor Margin) in Supermarket Channel
Manufacturer Selling Price = DPP * (1 - % Wholesaler Margin) in Natural Foods Channel
Wholesaler Selling Price = RPP * (1 - % Distributor Margin) in Natural Foods Channel
Distributor Sellling Price = RSP * (1 - % Retail Margin)
Explanation / Answer
The answer is as follows-
37.60%
Margin Chain for Manufacturer Selling Price (Natureview Yogurt) Supermarket Channel 8-oz 32-oz Retail Price $0.74 $2.70 Retail Margin 27.00% 27.00% Retail Purchase Price (RPP) = (MSP or DPP/1-Distributor margin%) 0.54 1.98 Distributor Margin 15.00% 15.00% Distributor Purchase Price (DPP) = MSP $0.46 $1.68 Manufacturer Sales Price (MSP) $0.46 $1.68 Cost Per Unit = MSP*(1-Manufacturer gross margin) 0.31 0.99 Contribution per Unit Sold = MSP-Cost per unit $0.15 0.69 Manufacturer Gross Margin 32.50% 40.90% Natural Foods Channel 8-oz 32-oz Multipack Retail Price $0.88 $3.19 $3.35 Retail Margin 35.00% 35.00% 35.00% Retail Purchase Price (RPP) = Distributor Purchase Price/(1-Distributor margin %) 0.57 2.07 2.18 Natural Foods Distributor Margin 9.00% 9.00% 9.00% Natural Foods Distributor Purchase Price = WPP/(1-wholesaler margin%) 0.52 1.89 1.98 Wholesaler Margin 7.00% 7.00% 7.00% Wholesaler Purchase Price (WPP) = MSP 0.48 1.76 1.84 Manufacturer Sales Price (MSP) = Cost per unit/(1-Manufacturer gross margin) 0.48 1.76 1.84 Cost Per Unit = MSP*(1-Manufacturer gross margin) $0.31 $0.99 $1.15 Contribution per Unit Sold = MSP-Cost per unit 0.17 0.77 0.69 Manufacturer Gross Margin 36.00% 43.60%37.60%