Reference no: EM132724672

Question -

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?