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Smart Profit Page 252
Essay specific features
Written by:
Debbie P
Date added:
June 1, 2012
Level:
College
Grade:
A
No of pages / words:
1 / 211
Was viewed:
4911 times
Rating of current essay:
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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