It costs a producer $400 to manufacture a product that is distributed through wholesalers and retailers.The markups at the producer,wholesaler,and retailer levels are 20 percent,20 percent,and 50 percent,respectively.The wholesaler's selling price for the product is ________,and the retailer's selling price is ________.
A)$625; $1,250
B)$576; $864
C)$480; $576
D)$500; $625
E)The amounts cannot be determined from the information provided.

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.

It Costs a Producer $400 to Manufacture a Product That