Question: 1. You operate a small hardware store with emphasis on manufacturer brands and have barely been breaking even. Evaluate the proposal of a large wholesaler who offers a full line of dealer-branded hardware items at substantially lower prices. Specify any assumptions necessary to obtain a definite answer.
2. Give an example where packaging costs probably: (a) lower total distribution costs and (b) raise total distribution costs
3. Is it more difficult to support a warranty for a service than for a physical good? Explain your reasons.