Question 1

If a wholesaler can buy an item for $38 that has a list price of $95,the trade discount percentage available to the wholesaler is:

Accepted Answer

A)  40%. 
B)  60%. 
C)  66%. 
D)  34%. 
E)  Cannot be determined from the above data.

Question 2

As a general rule,each channel participant wants a price that provides a __________ sufficient to cover its __________ and provide a contribution to __________.

Accepted Answer

A)  net profit; costs; sales 
B)  gross margin; expenses; profit 
C)  sales level; net profits; costs 
D)  contribution; gross margin; sales 
E)  sales; gross profit margin; net profit

Exam 11: Pricing Issues in Channel Management

If a wholesaler can buy an item for $38 that has a list price of $95,the trade discount percentage available to the wholesaler is:

As a general rule,each channel participant wants a price that provides a sufficient to cover its and provide a contribution to __.