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January 10, 2022

Monica’s Designer Handbags – Part 2

Business and Management, Undergraduate

Please review the two attached word documents and answer the following case study questions at the end of these instructions. This is a Business/Marketing paper that will require basic knowledge of marketing formulas to answer the questions. The “Case Study” document questions have already been completed and provides additional background in case it is needed. Please use the second document, “Monica’s Designer Handbags” to assist with answering the following questions.

1. Should Monica propose the Grand*Mart deal as suggested? Or should she take a pass and stay exclusively with the independent retailer channel? Or should she renegotiate the initial 2,000 bag deal for the first quarter? State your opinion clearly and simply in answer to this question.

2. What is the maximum wholesale price that Grand*Mart could be willing to pay Monica, given their probable retail price and typical margin requirements?

3. If Monica decides to renegotiate the Grand*Mart deal with volumes of 2,000 bags per month and incremental overhead of $25,000 per month, what best and final price should she propose that would be acceptable to both parties? What is the revised incremental profit impact?

APA Format / Times New Roman
This should be completed within one page (single spaced) please.

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