23 Within a given distribution channel, the following information is available c
ID: 2343157 • Letter: 2
Question
23 Within a given distribution channel, the following information is available concerning trade margins and costs. A wholesaler has a unit selling price of $215 and a unit cost of $140. The retailer requires a 36% markup on selling price. The manufacturer has unit variable costs of $35. Calculate the wholesaler percent markup on cost. Report your answer as a percentage and round to the nearest percent. please show work.
24 Within a given distribution channel, the following information is available concerning trade margins and costs. A wholesaler has a unit selling price of $260 and a unit cost of $130. The retailer requires a 21% markup on selling price. The manufacturer has unit variable costs of $62. Calculate the manufacturer's dollar margin per unit. Round your answer to the nearest dollar. please show work
25 Within a given distribution channel, the following information is available concerning trade margins and costs. A wholesaler has a unit selling price of $894 and a unit cost of $521. The retailer requires a 45% markup on selling price. The manufacturer has unit variable costs of $306. Calculate the manufacturer's percent markup on cost. Report your answer as a percentage and round to the nearest percent.please show work.
26 A manufacturer is considering a switch from manufacturers’ representatives to an internal sales force. The following cost estimates are available. Manufacturers’ reps are paid 8.4% commission and incur $575,000 in fixed costs, while an internal sales force has fixed costs projected at $2,180,000 and would receive 3.3% commission. At what sales volume would the manufacturer be indifferent between the two alternatives? Report your answer in dollars.please show work.
27 A manufacturer is considering a switch from manufacturers’ representatives to an internal sales force. The following cost estimates are available. Manufacturers’ reps are paid 8.7% commission and incur $590,000 in fixed costs, while an internal sales force has fixed costs projected at $1,880,000 and would receive 3.0% commission. Assume that sales revenue is double the breakeven volume or the point at which the manufacturer would be indifference between reps and an internal sales force. At this volume, how much would the manufacturer save, assuming the company had switched to an internal sales force? Report your answer in dollars. please show work.
Explanation / Answer
Q23. Wholesale selling price 215 Less: Wholesale cost 140.00 Wholesale markup in $ 75.00 Wholesale markup as % of cost 54.00% (75/140*100) Q24. Manufacturer Selling price (cost to wholesaler) 130 Less: Unit variable cost 62 Unit dollar margin 68 Q25. Manufacturer Selling price (cost to wholesaler) 521 Less: Unit variable cost 306 Unit dollar margin 215 Manufacturer markup on cost (215/306)*100 70.26% Q26. Fixed csot Commission Representative 575,000 8.40% Internal sales force 2,180,000 3.30% Difference 1,605,000 5.10% Indifference point: Difference in FC/ Difference in Commission 1605000 /5.10% = $ 31470588 Q27. Fixed csot Commission Representative 590,000 8.70% Internal sales force 1,880,000 3.00% Difference 1,290,000 5.70% Indifference point: Difference in FC/ Difference in Commission 1290000 /5.70% = $22631,579 Sales (22631579*2) 45263158 Additional fixed cost to be paid 1290000 Savings in commission (45263158*5.70%) 2580000 Savings due to switching to Internal sales force 1,290,000
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