Marketing Arithmetic Essay Example

Increasing both the retail margin per unit and the wholesale margin per unit results in a decrease in the manufacturer's selling price as it reduces product costs coverage and increases profit. Unit contribution refers to the money left after selling a unit to wholesalers and paying variable costs, making high unit contribution preferable for profitability. This means more money is available after covering fixed and variable costs. When retail and wholesale margins increase with a fixed retail price, the unit contribution decreases because less money is needed to maintain profit impact. If any of the fixed cost factors increase, more units need to be sold to break even, requiring an increased market share. To increase Profit Impact, there should be a decrease in the retail margin per unit. An increase in Bra