Question

The usual retail price of an item is 92. The manufacturer's cost to produce the item is 47. Retailers take a 42 percent markup and wholesalers take a 10 percent markup. What is the retailer's markup in dollars?

Answer 1

Final answer:

The retailer's markup on the item with an initial manufacturer's cost of $47 and a 10 percent wholesaler markup is $21.71.

Step-by-step explanation:

To find the retailer's markup in dollars on an item that costs the manufacturer $47 to produce, with retailers taking a 42 percent markup and wholesalers taking a 10 percent markup, we first need to calculate the wholesale price of the item. We add the 10 percent wholesaler markup to the manufacturer's cost:

$47 + (10\% \text{ of } $47) = $47 + $4.70 = $51.70

Now that we have the wholesale price, we can calculate the retailer's markup in dollars by applying the 42 percent markup to the wholesale price:

(42\% \text{ of } $51.70) = $21.71

Therefore, the retailer's markup on the item is $21.71.