Question

Shown below is the channel of distribution for a lawn care product branded as "Green Machine", a new 36", self- propelled, battery-driven lawn mower. Manufacturer Wholesaler Retailer Consumer $ per unit Cost ($) Markup ($) Selling Price ($) $600 Note: the figures in the table above are in "dollars per unit." • Retailer's markup policy: 60% on selling price • Wholesaler's policy: 40% on cost • Manufacturer's variable costs per unit: $55.00 • Market potential for this new mower is estimated to be 200,000 units. How much revenue does the manufacturer make on each lawn mower (rounded to nearest whole number)? $286 $715 $312 $922 $1.250

Answer 1

(Paga Nal Date * Calculation : - Let us diest Uncleestand relation between Selling Price & Cost of Retailed wholesaler & manufactures. Selling Price of manufactures will be cost of whole Saler. Selling price of whole sales of Retailer will be cost The formula is :- - Cost & Markup: Selling price. Here we know $600 which is that markup 60% of of Retailee is selling price. So Selling Price - Goo X 100/60 = 81000. 60 of sp=600 So 100of Spis S 1000. Cost of Retailer = = Selling price - Markup 1000 - GOO Cost of Retailer is same as selling price of Wholesale so sp of wholesaler = 8400 whole salee policy is mark up of 4oy.on | Cost so the spris 140% Selling Price 140% = 8400 So cost 100% = 400x 100 / 140 = $285.711

Pege No Dete cost of wholesales is $286. Selling price of manufa Churen is same as Cost of wholesalee eso SP = $286. First option ine. 4286 is correct manufactured makes a devenue of st 286 by Selling aunit of lawn mowee.