Roll No.

: 2012197
Name: Anoop R
Section: ME A
Assumptions:
1. MRP is Rs 125
2. State 1 has Local Sales Tax (LST) of 8%. This is applicable on 1st sale in State only.
3. State 2 has Value Added Tax (VAT) of 10% but retailer is exempt (composition scheme based on turnover)
4. State 3 (or a different product category in State 2) has VAT of 12% but retailer is not exempt
5. Stockist margin is 6%
6. Retailer margin is 14%
State 1 State 2 State 3
Cost to consumer including taxes (MRP) 125.00 125.00 125.00
State 3
Tax included in above 0.00 0.00 2.30
Cost to consumer excluding taxes 125.00 125.00 122.70
Retailer Margin 17.50 17.50 17.18
Cost to retailer including taxes 107.50 107.50 105.52
State 2 State 3
Tax included in above 0.00 1.54 2.00 1.54
1
Cost to retailer excluding taxes 107.50 105.96 103.52 FALSE
100
Stockist Margin 6.45 6.36 6.21
Cost to stockist including taxes 101.05 99.60 97.31
Tax included in above 7.49 9.05 10.43
Cost to stockist excluding taxes (MSP) 93.56 90.55 86.89
Instructions:
1. Close this file, rename it to: YourName_RollNo_Pricing Quiz, and then open it again
2. Enter your details at the top of this sheet
3. State 1 is allocated 2 marks, State 2 is allocated 3 marks and State 3 is allocated 5 marks
4. Every item in each State should be correct down to the last paisa - there are no marks for partial answers or correct "workings"
5. The 3 Solver parameters should be saved in the spaces provided with bold outlines. No marks will be awarded if these spaces are left blank even though your answer may be correct.
6. Once you are done, email your Excel sheet to tarunp@gim.ac.in with the subject line: "YourName_RollNo_Pricing Quiz"
7. Check that your email has been received in the inbox of my laptop before leaving the classroom
Solver Load Locations
MARKETING EXECUTION: PRICING QUIZ