Reference no: EM132734696

Question - Please help me understand step-by-step how to get to the answers provided by my professor:

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 house ware 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?