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Assignment:
You are vice president of marketing for a company that produces refrigerated pasta meals and sells them to retailers in various channels. You plan to produce a new line of meals that will be packaged in individual portions and made entirely of natural ingredients. The research you've done suggests that consumers will buy this new product if it costs less than $9 per meal. You will sell these pasta meals through specialty food distributors who will distribute them to health food stores where consumers can purchase them. These health food stores ask for a 30% retail margin while distributors ask for a 20% wholesale margin.
Question 1. Please determine the price that food distributors will charge health food stores if the latter sell the product to consumers at a price of $8.99 per unit.
Question 2. Please determine the price that the manufacturer will charge food distributors.
Question 3. Please determine the price that the manufacturer will charge food distributors.
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