Final answer:
After calculating the impact of a 10% increase in the wholesale cost and applying the retailer's margin of 25%, the new retail selling price of MyTie bowties to the nearest whole dollar is $52.
Step-by-step explanation:
To determine the new retail selling price of the bowties, we need to calculate the impact of the 10% increase in the wholesale price and then apply the retailer's margin.
First, let's calculate the new wholesale cost after a 10% price increase:
Old Wholesale Cost = $25.00
Increase = 10% of $25.00 = $2.50
New Wholesale Cost = $25.00 + $2.50 = $27.50
Next, let's find out what the wholesaler would sell it for if they maintain a 30% margin:
Wholesale Margin = 30%
Wholesale Selling Price = New Wholesale Cost / (1 - Wholesale Margin)
Wholesale Selling Price = $27.50 / (1 - 0.30)
Wholesale Selling Price = $27.50 / 0.70
Wholesale Selling Price = $39.29 (rounded to the nearest whole dollar is $39)
Finally, calculate the retailer's selling price while maintaining a 25% margin:
Retail Margin = 25%
Retail Selling Price = Wholesale Selling Price / (1 - Retail Margin)
Retail Selling Price = $39 / (1 - 0.25)
Retail Selling Price = $39 / 0.75
Retail Selling Price = $52.00
Therefore, the new retail selling price is $52 to the closest whole dollar.