The following information is for SaltiSweet Ice Cream LLC SaltiSweet Revenue per Unit: $0.86 Distribution Mark-Up: 15% Units per retail box: 4 Whole Foods Required Gross Margin: 40% To calculate the correct cost per retail box to the consumer (WF Revenue): WF COGS (1 - WF Required Gross Margin) $7.49 WF COGS / (1 - WF Required Gross Margin) = $6.60 Not enough information to solve the problem O Distribution Mark-Up / (1 - SaltiSweet Required Gross Margin) - $3.99 (SaltiSweet Revenue per unit 4 units per retail box) / Distribution Mark-Up = $8.60
The following information is for SaltiSweet Ice Cream LLC SaltiSweet Revenue per Unit: $0.86 Distribution Mark-Up: 15% Units per retail box: 4 Whole Foods Required Gross Margin: 40% To calculate the correct cost per retail box to the consumer (WF Revenue): WF COGS (1 - WF Required Gross Margin) $7.49 WF COGS / (1 - WF Required Gross Margin) = $6.60 Not enough information to solve the problem O Distribution Mark-Up / (1 - SaltiSweet Required Gross Margin) - $3.99 (SaltiSweet Revenue per unit 4 units per retail box) / Distribution Mark-Up = $8.60
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:The following information is for SaltiSweet Ice Cream LLC
SaltiSweet Revenue per Unit:
$0.86
Distribution Mark-Up:
15%
Units per retail box:
Whole Foods Required Gross Margin: 40%
To calculate the correct cost per retail box to the consumer (WF Revenue):
WF COGS (1 - WF Required Gross Margin) $7.49
WF COGS / (1 - WF Required Gross Margin) = $6.60
Not enough information to solve the problem
Distribution Mark-Up / (1 - SaltiSweet Required Gross Margin) - $3.99
(SaltiSweet Revenue per unit 4 units per retail box) / Distribution Mark-Up = $8.60
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