. 4. Channel Markups: (always solved using formula based on selling price – MU r )
. A manufacturer sells a $17.00 item to the wholesaler for $22.00. The wholesaler in
. turn sells it to the retailer for $28.00 and the retailer sells it to the public for $33.00.
. What is the markup at each level? What does the consumer pay for the item?
Man. level = 23% Wholesale level = 21% Retail level = 15%
Consumer pays $33.00
So I know these answers are correct but I have no clue how to get the answers, please show step by step! thank you:)
Markup % = (Selling price - Cost price) / Cost price * 100
Manufacturer level
= (22 - 17) / 22*100
=22.7%
=23% (approximately)
Wholesaler level -
Markup % = (28 - 22) /28*100
=21.4
=21% ( approximately)
Retailer level -
Markup % = ( 33 - 28) / 33*100
=15.1%
=15% (approximately)
Retailers sell it to customer at $33. So, they will pay $33 for the product.
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. 4. Channel Markups: (always solved using formula based on selling price – MU r ) . A manufacturer...