(10 minutes) You’re trying to understand the competition’s m…
(10 minutes) You’re trying to understand the competition’s margin structure to help you plan your entry into a new market. The distribution channel follows a typical Manufacturer to Wholesaler to Retailer to Consumer structure. Your team has only been able to collect the following information: Retailer Price: $120 Wholesaler Price = $80 Manufacturer Price = $70 Manufacturer Variable Cost = $35 A. Complete the following table: Selling Price Variable Cost Margin $ Margin % Manufacturer Wholesaler Retailer Consumer B. Briefly discuss how you could use this information to your advantage when planning to enter this market.
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