Answer to Question #130532 in Economics for Muhammad Ashraf Hossain

Question

A consumer purchases a computer for $800 from a retailer. If the retailer’s markup is 30 percent and the wholesaler’s markup is 10 percent, both based on their respective selling prices, at what price does the manufacturer sell the product to the wholesaler?

Answer 1

The manufacturer sell the product to the wholesaler at the price of: $P = 800×(1 - 0.3)×(1 - 0.1)= 504.$