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Business, 22.04.2021 20:50 jscout2468

As the owner of Acme Distribution Company, a medical equipment distributor, you are worried about your gross margins shrinking to an unacceptable level. One of your products has a manufacturer suggested retail list price of $3,000 and you currently receive a 40% trade discount off the $3,000 price. Your salespeople typically give a professional discount to the doctors. In order to make a net profit, you need a minimum margin of 30% on the final selling price given to the doctors. What is the maximum discount amount that your salespeople could give to the doctors and not fall below the required margin? (Hint: may want to determine distributor discount & SP first, then target gross margin SP for the doctors, then discount amount to doctors based on their SP). (If you get it right, you get an extra 5 points). Group of answer choices $1,800 $429 $2,571 $780

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