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

a. What is the retailer's markup in dollars?
b. What is the wholesale price?
c. What is the manufacturer's price?
d. What is the manufacturer's markup percentage?

The XYZ Manufacturing Company is trying to set its price on a product that will sell at retail for $80.

a. For retailers to earn a markup of 25%, what should the wholesale price be?
b. For the wholesalers to earn a 10%, what should the manufacturer's price be? 

Marketing Management, Management Studies

  • Category:- Marketing Management
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