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%, 20% and 50%, respectively. The wholesaler's selling price for the product is __________, and the retailer's selling price is ___________.
A) $625; $1250
B) $576; $864
C) $480; $576
D) $500; $625
E) Cannot be determined from the information provided

Question

Quizplus · Accepted Answer

The producer's selling price is $400 * 1.20 = $480. The wholesaler's selling price is $480 * 1.20 = $576. The retailer's selling price is $576 * 1.50 = $864.

It Costs a Producer $400 to Manufacture a Product That