Retailer selling price of a printer is $600
Retailer markup on selling price = 25%
Wholesaler markup on selling price = 20%
Manufacturer's cost is $200
What was the cost to the wholesaler?
What Is A Markup:
In the retail environment where there are multiple layers to distribution channels, it is common for companies to establish their price as a Markup on the selling price. This Markup reflects the portion of the selling price that is gross profit.
Answer and Explanation:
Wholesaler selling price = Retailer cost
Retailer cost = Selling price - Selling price *0.25
=600 - 600*0.25
Wholesaler selling price = $450
Wholesaler cost = Selling price - Selling price *0.20
The wholesaler cost is thus $360.
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
from Principles of Marketing: Help and ReviewChapter 12 / Lesson 22