A certain item has a production cost of $24.The manufacturer takes a 25 percent markup,the wholesaler takes a 20 percent markup,and the retailer takes a 50 percent markup.The item therefore has a retail selling price of $80.

Question

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A markup chain is the sequence of markups firms use at different levels in a channel and determines the price structure in the whole channel.The markup is figured on the selling price at each level of the channel.

A Certain Item Has a Production Cost of $24