roblem #3: Retailer Margin Model Thus far, Tess has sold the Prius directly to consumers via Toyota-owned car dealerships. However, in order to expand sales, she is considering expanding her distribution to dealerships which are not owned by Toyota. In order to sell through these dealerships, Tess will need to pay the owners of the dealerships money to sell her cars to consumers, to cover their costs. The dealerships that Tess is pursuing require a 30% retailer margin in order to take on new car brands to sell. Tess would like to maintain her $24,000 price to the consumer and is thinking about selling the cars to the dealers at a cost of $20,000. Does this yield enough retailer
roblem #3: Retailer Margin Model Thus far, Tess has sold the Prius directly to consumers via Toyota-owned car dealerships. However, in order to expand sales, she is considering expanding her distribution to dealerships which are not owned by Toyota. In order to sell through these dealerships, Tess will need to pay the owners of the dealerships money to sell her cars to consumers, to cover their costs. The dealerships that Tess is pursuing require a 30% retailer margin in order to take on new car brands to sell. Tess would like to maintain her $24,000 price to the consumer and is thinking about selling the cars to the dealers at a cost of $20,000. Does this yield enough retailer
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Problem #3: Retailer Margin Model Thus far, Tess has sold the Prius directly to consumers via Toyota-owned car dealerships. However, in order to expand sales, she is considering expanding her distribution to dealerships which are not owned by Toyota. In order to sell through these dealerships, Tess will need to pay the owners of the dealerships money to sell her cars to consumers, to cover their costs. The dealerships that Tess is pursuing require a 30% retailer margin in order to take on new car brands to sell. Tess would like to maintain her $24,000 price to the consumer and is thinking about selling the cars to the dealers at a cost of $20,000. Does this yield enough retailer
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