Reference no: EM132726481

Questions -

Q1. You manufacture hand-held blenders, which you sell to wholesalers, and in turn, they sell to retailers. You have developed a new blender. You know your competitor's product retails for $23 in houseware stores. You know yours is slightly better and are confident your product could sell for $27. Assuming a retail markup of 33% and a wholesale margin of 25%, a) what is the wholesaler's selling price to the nearest cent, and b) for how much to the nearest cent, can you sell the blenders to the wholesaler?

Q2. As a small appliance manufacturer, your cost to manufacture and package your coffee maker is $10 per unit, and sell it to a wholesaler for $19 per unit. The wholesaler has a 25% margin, and retailers typically have a 33% markup on small appliances. To the nearest cent, for what price will your product retail?

Q3. A bearing manufacturer buys raw materials for $.50 per unit, turns the raw materials into a roller bearing, and sells the product to a wholesaler for $1 per unit. The wholesaler sells the bearings to retailers for $2 per unit and finally consumers buy the product for $3 per unit.

1. What is the per unit margin in $ (nearest cent) for the manufacturer, wholesaler and retailer?

2. What is the per unit margin in % (nearest) for the manufacturer, wholesaler and retailer?

3. What is the per unit margin in % (nearest) for the entire chain?

Q4. Harry Rosen's buys its high end suits through a Hong Kong wholesaler. Rosen's best suits retail for $5500, which includes its usual 30% markup on luxury products. The wholesaler's margin is 50%. To the nearest cent, what is the manufacturer's selling price?

Q5. A small manufacturer in Northern Ontario makes all the canoe paddles that are sold in Canada. Each paddle is handcrafted and costs $5 in materials and labour to manufacture. It sells these paddles to a wholesaler specializing in sports equipment after adding a 20% margin. The wholesaler includes a 20% margin when selling retailers like Mountain Equipment Coop (MEC). If MEC marks up sports equipment by 25%, to the nearest cent, what can a consumer expect to pay for a paddle?

Q6. World cycle sells its own branded hybrid bicycles for $700 after adding a 20% markup. It purchases them from a wholesaler specializing in generic hybrids that can be personalized by retailers. The wholesaler adds a 15% margin before selling to the retailer. The manufacturer adds a 20% margin before selling to the wholesaler. To the nearest cent what does it cost the manufacturer to make the hybrid?

Q7. Global Pet Foods sells bully sticks (dog treats) for $4.99 for the medium-sized and $6.99 for the large-sized. Their margin is 30% on the wholesale price. Likewise the wholesaler marks up the manufacturer's selling price by 20%. What is the manufacturer's selling price to the nearest cent for each product?

Q8. Adrianna found beautiful leather purses on a recent trip to Italy that are made by a woman in her home. The Italian woman will sell each bag to Adrianna for $25, to which she will add on a margin of 50%. She knows that she cannot get the distribution she wants by selling them directly, so she intends to use a wholesaler that specializes in imported leather. Their usual margin is 25%. Retailers will add a 30% markup. What can a consumer expect to pay to the nearest cent for each Italian purse?

Q9. Lida Baday is a Toronto-based fashion designer, who also happens to be a Ryerson graduate. A consumer can expect to pay $500 for a Liday Baday dress. That price includes a 25% markup by the retailer and a 20% wholesale margin. To the nearest percent what is Lida Baday's selling price?

Q10. Bajar Greenhouse grows annuals under the President's Choice brand name to be sold in Loblaws stores. Consumers pay $6.99 for a six inch geranium. If Loblaws puts a 22% markup on its garden products, for what price to the nearest cent does Bajar's sell geraniums to Loblaws?

Q11. Loblaws also allows other garden centres to sell its President's Choice geraniums, which they in turn sell to consumers for $7.99. If the other garden centres add a 15% markup to the cost of the geraniums from Loblaws (see Q. 4), what is Loblaw's margin on these geraniums to the nearest percent?

Q12. A screwdriver manufacturer buys raw materials for $1.85 per unit and sells its screwdrivers to a wholesaler for $3.75 per unit. The wholesaler then sells the screwdrivers to retailers for $5.35 per unit, and finally, consumers buy the screwdriver for $7.50 per unit. What is the percent margin per unit to the nearest whole number for the entire chain?