Smart Profit Page 252

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Issue:

Business

 

Written by:

Debbie P

 

Date added:

June 1, 2012

 

Level:

College

 

Grade:

A

 

No of pages / words:

1 / 211

 

Was viewed:

4848 times

 

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Essay content:

The profit for the manufacturer will then be 100 x $300 - 60 x $50 = $27,000 which is higher than the $25,000 obtained with the wholesale discount.
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Initial Demand Order Quantity Manufacturer selling price Retailer Price to consumer Final demand Manufacturer profit Discount 150 100 $250 $325 $ 325 $ 150 $25,000 Mail-in-Rebate 150 100 $300 $325 $ -50 $ 275 $ 175 $25,000 Discount 50 100 $250 $325 $ 325 $ 50 $25,000 Mail-in-Rebate 50 100 $300 $325 $ -50 $ 275 $ 60 $27,000 In the second situation the order quantity is 100 but the demand is only 50 units...
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