Price Escalation To receive credit you must show the calculations. An answer tho

Question

Price Escalation

To receive credit you must show the calculations. An answer though correct without showing the calculations receives zero credit.

1. For a traditional distribution chain of manufacturer -> wholesaler -> retailer -> consumer, determine the distribution channel prices and the price to the consumer when
the manufacturing cost is $20,
the manufacturer wants a 30% markup,
the wholesaler wants a 15% markup, and
the retailer wants a 60% markup.
a. Manufacturing cost =
b. Pmw, price from manufacturer to wholesaler =
c. Pwr, price from wholesaler to retailer =
d. Prc, price from retailer to consumer =

Explanation / Answer

a.Manufacturing cost = $20.....(given).

b.PMW, price from manufacture to whole saler = $20 + desired markup

=>$20 + 30%

=>$20 +$6

=>$26

c.PWR, Price from wholesaler to retailer = $26 + 15%

=>$26 + $3.90

=.$29.90.

d.PRC, Price from retailer to consumer

=>$29.90 +60%

=>$29.90 +$17.94

=>$47.84.

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