It costs a company $6 to manufacture a product. It sells the product for $10 to a wholesaler who in turn sells it to a retailer for $12. A customer of the retailer buys it for $24. What was the markup on selling price for each member of this product's channel of distribution?
A. Manufacturer's markup = 66.67 percent; wholesaler's markup = 20 percent; retailer's markup = 100 percent
B. Manufacturer's markup = 60 percent; wholesaler's markup = 20 percent; retailer's markup = 100 percent
C. Manufacturer's markup = 60 percent; wholesaler's markup = 23 percent; retailer's markup = 40 percent
D. Manufacturer's markup = 40 percent; wholesaler's markup = 16.67 percent; retailer's markup = 50 percent
E. Manufacturer's markup = 48 percent; wholesaler's markup = 18 percent; retailer's markup = 45 percent
Answer: D
You might also like to view...
A valid shipping notice input is one that is supported by both:
a. an approved sales order and a completed picking ticket b. an approved sales order and an actual shipment of goods c. an approved sales order and a customer acknowledgement d. an approved sales order and customer credit verification
For accounting purposes, stated value is treated the same way as par value
Indicate whether the statement is true or false
Wytch Corporation bases its budgets on machine-hours. The company's static planning budget for February appears below:?Budgeted number of machine-hours 6,000Budgeted variable costs:?? Supplies (@ $6.90 per machine-hour)$41,400 Power (@ $3.70 per machine-hour) 22,200Budgeted fixed costs: Salaries 51,600 Equipment depreciation 26,400Total expense$141,600?Required:?Prepare a flexible budget for 6,400 machine-hours per month.
What will be an ideal response?
Which of the following is the largest advertising medium in terms of advertising revenues?
A. radio B. magazines C. television D. Internet E. newspapers