Question

. (30%) Hearty Snacks Company sells its Paleo-Popcorn product to consumers through a distribution channel that consists of distributors (wholesalers) and retailers. The company has decided to set a margin of 40% on all its products. Retailers’ margins in the industry are typically 40%, and distributors’ margins average 25%. The company wants the retail price of the product to be $20. Answer the questions below.

(a) Given the information provided, fill in the missing numbers in the price chain below, including (as the last step) Hearty Snacks cost:

Retailer’s price to consumers ($)	$20.00
Retailer’s margin (%) (Retailer SP- Retailer cost)	40%
Retailer’s margin ($)       Retailer SP- Retailer cost	20-14.29 = $5.71
Retailer’s cost ($)	20/1.40 = $14.29
Distributor’s price to retailers ($)	$14.29
Distributor’s margin (%)	25%
Distributor’s margin ($)	14.29-11.43= $2.86
Distributor’s cost ($)	14.29 / 1.25 = $11.43
Hearty Snacks price to distributors ($)	$11.43
Hearty Snacks margin (%)	40%
Hearty Snacks margin ($)	11.43 – 8.16 = $3.27
Hearty Snacks cost ($)	11.40/1.40 = $8.16

I AM ASKING FOR PART B PLEASE.

(b) Hearty Snacks’ advertising agency has proposed a new marketing campaign, and the CEO is considering raising the company’s margin to 50% in order to fund the campaign. Assuming that Hearty Snacks cost is what you calculated above, and that the distributor and retailer margins remain the same, fill in the missing numbers below, including (as the last step) the new retailer’s price to consumers.

Retailer’s price to consumers ($)	24
Retailer’s margin (%)	40%
Retailer’s margin ($)
Retailer’s cost ($)
Distributor’s price to retailers ($)
Distributor’s margin (%)
Distributor’s margin ($)
Distributor’s cost ($)
Hearty Snacks price to distributors ($)
Hearty Snacks margin (%)	50%
Hearty Snacks margin ($)
Hearty Snacks cost ($)

Answer 1

SOLUTION:-

Retailers prlce to consumer (Given)	$ 20.00
Retailer margin %	40
Retailer margin $ (Retailer SP -Retailer cost, 20-14.29)	$ 5.71
Retailers cost $, (Retailer price/1.40, 20/1.40)	$ 14.29
Distributors price to retailer, (Distributor SP =Retailer cost, 14.29)	$ 14.29
Distributor margin %	25
Distributor margin $ (Distributor SP -Distributor cost, 14.29-11.43)	$ 2.86
Distributor cost $ (Distributor SP/1.25, 14.29/1.25)	$ 11.43
Hearty Snacks price to distributors ($) (Distributor cost = 11.43)	$ 11.43
Hearty Snacks margin (%)	40
Hearty Snacks margin($) (SP-CP, 11.43-8.16)	$ 3.27
Hearty Snacks cost ($) (SP/1.40, 11.43/1.40)	$ 8.16

THANK YOU, if any queries please leave your valuable comment comment box......

If possible then rate the answer as well