The Following Information Is Available from the Annual Reports of Flynn

question 168

Essay

The following information is available from the annual reports of Flynn Company and Tolan Inc. Instructions
1. Calculate the profit margin and gross profit rate for each company.
2. What conclusion concerning the relative profitability of the two companies can be drawn from these data?

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Definitions:

Buyer's Desire

The specific needs or wants that potential customers have, which directly influence their purchasing decisions.

Disintermediation

The process of removing intermediaries or middlemen from a supply chain, typically to allow producers to sell directly to consumers.

Channel Conflict

A situation in which there is discord or disagreement among marketing channel members, such as manufacturers, wholesalers, and retailers, usually over goals, roles, or rewards.

Channel Member

An entity (e.g., manufacturer, distributor, retailer) that plays a role in the distribution and sale of goods and services in the supply chain.