The profit an intermediary earns depends on the product line.Typically, food wholesalers earn 1 percent, while durable goods wholesalers can earn 5 percent.

Question

Quizplus · Accepted Answer

This statement is true. Food wholesalers typically operate with low profit margins, which is why they earn only 1 percent, while durable goods wholesalers have higher profit margins and can earn up to 5 percent. However, there may be exceptions depending on the specific product line and competition in the marketplace.

The Profit an Intermediary Earns Depends on the Product Line