Top Posters
Since Sunday
j
4
m
4
n
3
m
3
R
3
V
3
e
3
w
3
j
3
a
3
a
3
h
3
Home Q & A Board Other Fields Homework Help Business Marketing
New Topic  
Fade05 Fade05
wrote...
Go to Answer
Posts: 1021
Rep: 4 0
7 years ago
Marketing research has shown the product manager that customers are willing to pay no more than $11.99 for the costume jewelry items currently being considered for launch by the company.  The cost to produce these, and bring them to market, is $9.  The company expects a gross margin of 20% on cost, and the retailer expects to earn a gross margin of 50% of the retail price.  What should the product manager recommend for this product line?
A) launch the line with M.S.L.P. of $11.99
B) abandon this concept as it does not meet profitability expectations
C) launch the line with a M.S.L.P. of $21.99
D) seek to reduce costs by $3 per unit and launch the line
E) negotiate with the retailer to have them accept a gross margin of 30% of the selling price
Textbook 
THINK Marketing, Canadian Edition

THINK Marketing, Canadian Edition


Edition: 1st
Author:
Read 86 times
2 Replies
Replies
Answer verified by a subject expert
BlueFusionBlueFusion
wrote...
#1
Top Poster
Posts: 679
Rep: 29 1
7 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here

Related Topics

wrote...
#2
4 years ago
like
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  935 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 66
  
 422
  
 277
Your Opinion
Who will win the 2024 president election?
Votes: 19
Closes: November 4
Previous poll results: Does a gender wage gap exist in America?