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What is the dollar markup for the manufacturer

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Question - A manufacturer sells its product to a distributor who in turns sells it to a retailer. The manufacturer's selling price is $20.00 and is making a 25% gross profit margin (GPM) on the product. The distributor marks up the product 50% on his cost, and the retailer marks up the product 100% on her cost. Respond to the following questions, showing the logic and formulas used in arriving at your conclusions.

a. What is the dollar markup for the manufacturer? And, therefore, what is the manufacturer's markup on cost percentage?

b. What price will the distributor charge? Also, what is his unit gross profit margin in percentage (GPM%)?

c. What price will the retailer charge? What is her GPM in percentage?

Reference no: EM132882478

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