An item cost $20 to produce.The retailer sold the product for $79.It had cost the retailer $50.The wholesaler had paid $34 for the product.The list price of the product was $100.The total of the dollar gross margins received by the manufacturer,wholesaler,and retailer amounts to:
A) $50.
B) $63.
C) $59.
D) $80.
E) $29.

Question

Quizplus · Accepted Answer

The total gross margin is the difference between the selling price and the cost of the product. For the manufacturer, the gross margin is $79 - $20 = $59. For the wholesaler, the gross margin is $50 - $34 = $16. For the retailer, the gross margin is $79 - $50 = $29. The total gross margin is $59 + $16 + $29 = $104.

An Item Cost $20 to Produce