|You will be using the Database Problem 14.2 Template and the same contribution margin worksheets (New Cars Contribution-10 years, Used Cars Contribution-10 Years, and Repairs Contribution 10 years) for the three segments of Prestige Auto’s business: New Cars, Used Cars, and Service. Your assignment is to sum up channel costs and calculate the percentage of sales the total channel costs represent. To complete the exercise, determine the percentage of revenue the channel costs represent. a. Turn in your worksheet with the solution to the problem along with your answer to the following question. b. Which segment has the highest channel costs? Does this make sense? Why or why not?|
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