Question

You are considering different types of distribution channels for your prod- uct. You are confident of...

You are considering different types of distribution channels for your prod- uct. You are confident of generating $1 million worth of sales yearly. How much of this sales revenue will you receive if you
a. sell directly to your customer?
b. go through a wholesaler?
c. go through both a wholesaler and a retailer?
Assume that you have to pay 10% commission to the wholesaler in part (b). For part (c), assume that the retailer takes 5% of generated sales, and that the wholesaler takes 10% of what is left before passing the money along to you.

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