Question

Within a given distribution channel, the following information is available concerning trade margins and costs. A wholesaler has a unit selling price of $255 and a unit cost of $145. The retailer requires a 38% markup on selling price. The manufacturer has unit variable costs of $35. Calculate the wholesaler percent markup on cost. Report your answer as a percentage and round to the nearest percent.

Within a given distribution channel, the following information is available concerning trade margins and costs. A wholesaler has a unit selling price of $62 and a unit cost of $32. The retailer requires a 41% markup on cost. The manufacturer has unit variable costs of $12. Calculate the retailer selling price. Round your answer to the nearest dollar.
Within a given distribution channel, the following information is available concerning trade margins and costs. A wholesaler has a unit selling price of $27 and a unit cost of $18. The retailer requires a 34% markup on selling price. The manufacturer has unit variable costs of $8. Calculate the retailer selling price. Round your answer to the nearest dollar.
Consider the following situation. Tricon Piping Systems manufactures small diameter potable polyethylene water pipe and achieves distribution primarily through plumbing wholesalers. The firm also sells directly to large construction companies, often creating friction with the plumbing wholesalers. Because there are several manufacturers who produce to the same specifications, price competition is often intense. The salesperson for Tricon recently offered a price concession to capture an order. Here are the specifics. The salesperson bid a job at $19,570 (list price). Tricon endeavors to sell at list price, and enjoys a 43% gross margin on the pipe in question at list price. In order to gain the "business" and to secure her commission, the salesperson offered the customer a 18% price discount. Calculate the dollar change (+/-) in gross margin. Round your answer to the nearest dollar.

Answer 1

To find the profit-maximizing quantity for AAA Aquarium Co., calculate and analyze the total revenue, total cost, and marginal cost, then graph these to identify where marginal cost equals marginal revenue.

Step-by-step explanation:

The AAA Aquarium Co.'s challenge is to determine the profit-maximizing quantity of aquariums to produce and sell. As with most firms in a perfectly competitive market, they must consider both marginal costs and marginal revenue. To identify this quantity, we must calculate the total revenue, total cost, and marginal cost at each output level. After creating a table with this data, we then sketch the total revenue and total cost curves on one diagram, and the marginal revenue and marginal cost curves on another diagram. The point where marginal cost and marginal revenue intersect will give us the profit-maximizing output level. It's at this point that the additional cost of producing one more unit equals the additional revenue gained from selling that unit.