Discuss the aspects of libby pricing policies

Reference no: EM131926604

Question: Libby Corporation produces a wide line of calmed foods--including "Early," one of the leading brands of canned corn. The wholesale selling price for a case (48 cans) of Early corn is $9.60--which includes a 5 percent trade discount for the wholesaler. Libby also gives a 10 percent quantity discount to wholesalers who buy in carload quantities. Wholesalers normally pass the quantity discount along to their customers in the form of lower prices. The identical corn is also sold to a few large food chains for use as dealer brands. The cans are sold under different labels at $8.00 per case (minus the 10 percent quantity discount if earned). Libby allocates 3 percent of its net sales of Early corn toward national advertising. Suppose the Federal Trade Commission were to take a close look at Libby's pricing methods to see whether the manufacturer was violating federal pricing legislation. What aspects of Libby's pricing policies do you think the FTC might question based on what is presented above? Why? What laws might be involved?

Reference no: EM131926604

Questions Cloud

Calculate the impact of the exhibit on company profit : The company estimates that revenue will increase by $36,000 over the next year as a result of the exhibit.

How many years can he contribute the maximum amount : Assume Studebaker will earn a 4 percent after-tax annual return in the money market. For how many years can he contribute the maximum amount to the TDA.

Find the expected return for the portfolio if she invests : Suppose the investor wants to construct a portfolio with expected return equal to 9.5%. What are the portfolio weights for this portfolio?

Glucosamine and chondroitin dietary supplements : Based on what you learned and the above information, what could explain the controversy of glucosamine and chondroitin dietary supplements?

Discuss the aspects of libby pricing policies : Libby Corporation produces a wide line of calmed foods--including "Early," one of the leading brands of canned corn. The wholesale selling price for a case.

Implement the network design approved by the tender process : You have been given the final design approved by the tender process and hired to implement that design. In this submission you should take the design given.

Why must working capital be managed : Why must working capital be "managed"? What are some techniques that a company may undertake to improve its working capital position?

Taking reference of the competences of the aone : Taking reference of the competences of the AONE, identify which of these describe this (a) nursing professional

Define factors that can lead to a company stock price rising : What are some factors that can lead to a company's stock price rising. Please be specific and provide proper explanation rather than just listing factors.

User Account

All Pages