16. Pocket Price: calculate the pocket price for the following product. Suggested Retail Trade Margin $9.99 33% Rebates 5% Promotion Allowance 2% Quantity Discount Geography Discount Truckload Allowance 5% 2% 2% Pickup Allowance 1% Sales Rep Incentive 5% Cost of Goods 30%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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pocket price calculation

16. Pocket Price: calculate the pocket price for the following product.
Suggested Retail
Trade Margin
$9.99
33%
Rebates
5%
Promotion Allowance
2%
Quantity Discount
5%
Geography Discount
2%
Truckload Allowance
2%.0
Pickup Allowance
Sales Rep Incentive
1%
5%
Cost of Goods
30%
4.27
Calculate impact on gross margin of going direct to the consumer.
Calculate the impact on gross margin of dropping the quantity purchase allowances.
What is the risk of dropping these incentives for purchasers?
Transcribed Image Text:16. Pocket Price: calculate the pocket price for the following product. Suggested Retail Trade Margin $9.99 33% Rebates 5% Promotion Allowance 2% Quantity Discount 5% Geography Discount 2% Truckload Allowance 2%.0 Pickup Allowance Sales Rep Incentive 1% 5% Cost of Goods 30% 4.27 Calculate impact on gross margin of going direct to the consumer. Calculate the impact on gross margin of dropping the quantity purchase allowances. What is the risk of dropping these incentives for purchasers?
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