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Retailers and wholesalers use traditional markups that they feel will yield a reasonable rate of profit. Answer the following set of problems.

1. The usual retail price of an item is $100. The manufacturer's cost to produce the item is $40. Retailers take a 50 percent markup and wholesalers take a 10 percent markup (markup is calculated on selling price, unless otherwise is indicated).

What is the retailer's markup in dollars?______________________________

What is the wholesale price?_______________________________________

What is the manufacturer's price?___________________________________

What is the manufacturer's markup percentage?_______________________

Marketing Management, Management Studies

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