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assume a manufacturer makes an item that costs $2.50 to produce. The markup when sold to the distributor is 35 percent. what is the cost to the distributor? when the distributor sells this item to the reatailer the markup is 40 percent. how much will the retailer pay for the item?

2007-03-02 03:10:04 · 5 answers · asked by Anonymous in Science & Mathematics Mathematics

5 answers

2.50*1.35=$3.375 price to distributor.

3.375*1.40 =$4.725 price to retailer

2007-03-02 03:16:26 · answer #1 · answered by jaybee 4 · 2 0

I agree with the previous answer, but I would have to ask if the mark when transferred from the distributor to the retailer, if the markup is 40% of the original cost or on top of the already 35% markup charged to the distributor.

If it is in addition to the previous 35% mark, then the previous answer is correct, if not then the answer would be:
2.5 x 1.40 = $3.50

2007-03-02 11:20:30 · answer #2 · answered by jlovett72078 5 · 0 0

manufactured for 2.50
{marked up 35% } ( 1 + .35) .88 (3.38) the cost to the distributor


{3.38 marked up 40%} (1 + .4) 1.35 (4.73)


final cost to consumer is 4.73

2007-03-02 11:30:09 · answer #3 · answered by Brian D 5 · 0 0

~~~ ~~~ ~~~ ~~~ ~~~ ~~~ ~~~ ~~~ ~~~ ~~~ ~~~ ~~~~~~ ~~~
Problem A:
$2.50 = manufacturer cost of production
35% = markup to the distributor
What is the cost to the distributor?

Solution:
$2.50 + .35($2.50) = $2.50 + $.875
= $2.50 + $.88 = $3.38 ♪♫ Answer Part A ♪♫


Problem B:
$3.38 = cost to the distributor
40% = markup to the retailer
What is the cost to the retailer?

Solution:
$3.38 + .40($3.38) = $3.38 + $1.352
= $3.38 + 1.35 = $4.73 ♪♫ Answer Part B ♪♫
~~~ ~~~ ~~~ ~~~ ~~~ ~~~ ~~~ ~~~ ~~~ ~~~ ~~~ ~~~~~~ ~~~

2007-03-02 12:48:55 · answer #4 · answered by M J 3 · 0 0

=2.5*1.35*1.4 = 4.725

2007-03-02 11:38:58 · answer #5 · answered by kinvadave 5 · 0 0

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