TopKnotch Mfg. Co. has a production cost of $280. It sells its product to a wholesaler for $400. The wholesaler then sells the item to retailers for $500 and the retailers sell the item for $1,000. Which of the following is true about this "markup chain?"
A) The wholesaler's markup is 25 percent.
B) The manufacturer is taking a markup of 30 percent.
C) The retailers' markup is 100 percent.
D) None of these alternatives is true for this markup chain.
Correct Answer:
Verified
Q109: A producer makes an item for $32
Q110: A low stockturn rate
A) is extremely good
Q111: A markup chain:
A) only applies to consumer
Q112: A firm with a stockturn rate of
Q113: A producer sells an item to a
Q115: Which of the following is a TRUE
Q116: A high stockturn rate:
A) is only possible
Q117: The number of times an intermediary's average
Q118: Wilson sells a basketball to a wholesaler
Q119: "Stockturn rate" means:
A) the number of days
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