An item cost a manufacturer 4 to produce. It has a wholesale ...

[karlynnae]

An item cost a manufacturer 4 to produce. It has a wholesale trade discount of 66 and a retail trade discount of 50. The list price of the item is 15 . Assuming the retailer sold the item for 12, the dollar gross margins received by the manufacturer, wholesaler, and retailer are respectively:
 a. 5.90, 2.40, 4.50.
  b. 4.50, 1.10, 2.40.
  c. 1.10, 2.40, 4.50.
  d. 1.40, 2.50, 7.50.
  e. 2.64, 2.40, 6.96.

Question 2

Which type of innovation is known to create new industries?
 a. Continuous innovation c. Dynamically continuous innovation
  b. Discontinuous innovation d. Congruous innovation

[krakiolit]

Answer to Question 1

C

Answer to Question 2

B
Discontinuous innovations (also known as radical innovations) are often responsible for the creation of new industries or new standards of management, manufacturing and servicing. The represent fundamental changes for consumers, entailing departures from established consumption. The Internet is an example of a discontinuous innovation as was the microwave when it was first introduced. This may be found in the Degree of Product/Service Newness section (10-4).