A manufacturer of athletic footwear has determined its total costs are $25 per pair of shoes. The company sells the footwear through wholesalers who in turn sell to retailers. The required wholesaler markup is 20% on cost while the required retailer markup is 50% on cost. The footwear manufacturer needs a markup of 25% on cost. What is the retail selling price?

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The correct answer is A.The manufacturer's cost is $25. The manufacturer's markup is 25%, so the manufacturer's selling price is $25 * 1.25 = $31.25. The wholesaler's markup is 20%, so the wholesaler's selling price is $31.25 * 1.2 = $37.50. The retailer's markup is 50%, so the retailer's selling price is $37.50 * 1.5 = $56.25.

A Manufacturer of Athletic Footwear Has Determined Its Total Costs