Question

Hello! Could someone please answer this for me? I would greatly appreciate it, and will totally like your answer! Length isn't necessarily important, just needs to be accurate and such. Thanks in advance!!!!!!! (References are needed when using examples, or include the link from where you got it and I can format the reference).

"Discuss the difference in the cost of items sold by a retail shoe store, the cost of items sold by a shoe manufacturer, and the cost of repairing shoes by the local cobbler, with examples."

Answer 1

Manufacturer will sell the quantity in bulk so he has the economies of large scale sales while retailer sales are in small quantities for example a company produces shoes in huge quantity say 10000units it will be supplied to retailers as retailer sales are low compared to manufacturrer they will purchase small quantities say 500 for each retailer here manufacturer has the advantage of maintaining all the inventory at same place so that his cost of rent per unit is low compared to retailers cost per unit

And manufacturer will also add profit to his cost before slaes which is included In retailer cost

Manufacturer cost : will be equal to cost of goods sold of manufacturer

Retailer cost = cost to manufacturrer + profit of manufacturer

Shoe repair person cost = retailer cost(for parts purchased from retailer) + profit of retailer ( as he purchased from retailer)+ additional costs to repair the shoe