A producer makes an item for $32 and sells it with a 50 percent markup to a wholesaler.The wholesaler then applies a 20 percent markup.A retailer then uses a 60 percent markup.The final retail selling price is
A)$200.00.
B)$73.60.
C)$64.00.
D)$80.00.
E)The final retail price cannot be determined without stockturn information.

Question

Quizplus · Accepted Answer

A producer's selling price becomes the cost the wholesaler pays.The wholesaler's selling price becomes the retailer's cost.And this cost plus a retail markup becomes the retail selling price.Each markup should cover the costs of running the business and leave a profit.

A Producer Makes an Item for $32 and Sells It