Manufacturing Bags

The product that this company will be manufacturing are bags that will be sold at Gap retail locations and through online sales. The price target for these bags is between fifty and eighty-five dollars, and retail markup is estimated to be approximately forty percent. This means the cost to the retailer will need to be kept in the range of approximately thirty-six dollars and sixty-one dollars in order for Gap to achieve a reasonable margin to cover its costs and make a profit. The manufacturing company would like to see a ten percent profit margin, as well, meaning that the final costs of manufacturing and distributing the bags (to Gap's own distribution centers, not through the full distribution chain to actual retail stores) need to be capped at between thirty-two and fifty-five dollars. Achieving these manufacturing and distribution goals should be fairly easily achievable in a variety of...
[ View Full Essay]