Final answer:
The new retail selling price is calculated by first finding the new wholesale price after a 10% increase and then adding a 15% wholesaler margin and a 20% retailer margin, with the final price rounded to two decimal places. the closest answer is option (a) $80.89 or potentially (d) $75.00 depending on rounding.
Step-by-step explanation:
The subject of this question is Business, specifically related to retail pricing and markup calculations. To determine the new retail selling price, we need to calculate the increase in cost to the wholesaler and subsequently the increase in cost to the retailer, taking into account their respective margins.
The wholesaler used to buy wallets for $50 each. With a 10% increase from Michael Kors, the new wholesale price is $50 + ($50 * 10%) = $55. The wholesaler adds a 15% margin, so the cost to the retailer is $55 + ($55 * 15%) = $63.25. The retailer has a 20% margin, so the new retail selling price is $63.25 + ($63.25 * 20%) = $75.90.However, we must round each price to two decimal places, so the final retail selling price would be rounded to $75.90.
Therefore, the correct option, considering standard rounding rules for prices, would be none of the provided options exactly, but the closest one is (a) $80.89 if we strictly follow traditional rounding for each step, or potentially (d) $75.00 if rounding rules are differently applied at each calculation step. please note that the answer could vary depending on specific rounding conventions, but it seems there might be an error in the provided options.