Markup / Markdown Question: A manufacturer's cost to produce an item is $50.00; a wholesaler marks...?

Question

A manufacturer's cost to produce an item is $50.00; a wholesaler marks the product up 10% on their selling price. The retail price is $175.00 after a 40% retailer markup on the selling price is taken.

Calculate all the channel member's missing costs and selling prices, their markups in $'s and as % of cost and selling.

Answer 1

if the retail is 175.00 and thats after a 40 % markup,,,,they marked it up $70,, the retailer purchased it for 105.00 ,, if the whole saler sold it for 105 and marked it up 10 percent (10.50) that means the wholesaler bought if for 94.50 , so the manufacturer sold it for a 44.50 profit ,,,,, i think lol

Answer 2

Retail Price $175
Retail Mark Up 40%
175 x 40%= $70 in retail mark up

175-70= $105 price sold by channel member to retailer
Channel members mark up 10%
105 x 10%= $94.50 Channel members price from manufacturer

$94.50 price the item was sold to the channel member by the manufacturer
$50 cost to produce the item less $94.50=$44.50 markup by the manufacturer
$50 x 89%=$44.50 89% was the mark up by the manufacturer to the channel member

Answer 3

The cost of the merchandise used in calculating markup consists of the base invoice price for the merchandise plus any transportation charges minus any quantity and cash discounts given by the seller Retail price, rather than cost, is ordinarily used in calculating percentage markup. The reason for this is that when other operating figures such as wages, advertising, and profits, are expressed as a percentage, all are based on retail price rather than on the cost of the merchandise being sold. Is the price of this item very important to your target consumers? You need to know your customers' desires for different products and whether price is an important issue in their purchasing decision? Have you established a price range that people will pay for the product? What is the high and low price that the merchandise will have to fall within for someone to buy? Have you considered what price strategies would be compatible with your store's total retailing mix that includes merchandise, location, promotion, and services? Markup is a percentage of the cost. Margin is the same dollar amount expressed as a percentage of the selling price. Example Item costs $1.00 Items sells for $1.50. Markup is .50 or 50 percent of the cost. Margin is .50 or 33 a percent of the selling price MARKDOWN. A markdown is a voluntary reduction in the selling price of an item. There are three types of markdowns: markdowns below cost, markdowns to zero, and retail markdowns. MARKDOWN BELOW COST. A markdown below cost is a voluntary reduction in the selling price of an item below its original cost value. MARKDOWN TO COST. A markdown to cost is a type of retail markdown in which the selling price of an item is reduced so that it is equal to its cost price. MARKDOWN TO ZERO. A markdown to zero is an expenditure of stock through a price change that reduces the value of the item to zero

Answer 4

90

Answer 5

wat the **** did u just say???????