Question

if a six-pack of a fruit-soda sells for $6 retail and the retailer’s margin is 25% and the wholesaler-distributor margin is 33.3% then what is the manufacturer’s price?

Answer 1

To calculate the manufacturer's price, divide the wholesaler-distributor's price by 1 plus the retailer's margin percentage.

Step-by-step explanation:

To calculate the manufacturer's price, we need to work backwards from the retail price of $6. Since the retailer's margin is 25%, we can calculate the retailer's price by dividing the retail price by 1 plus the retailer's margin percentage: $6 / (1 + 0.25) = $4.80.

Next, we need to calculate the wholesaler-distributor's price. Using the same formula, we divide the retailer's price by 1 plus the wholesaler-distributor's margin percentage: $4.80 / (1 + 0.333) = $3.60.

Finally, we can calculate the manufacturer's price by dividing the wholesaler-distributor's price by 1 plus the retailer's margin percentage: $3.60 / (1 + 0.25) = $2.88.

Answer 2

To find the manufacturer's price, we need to work backwards from the retail price. The manufacturer's price for a six-pack of fruit-soda is $2.99.

Step-by-step explanation:

To find the manufacturer's price, we need to work backwards from the retail price.

Since the retailer's margin is 25%, the retailer's selling price is 75% of the retail price.

Therefore, the retailer's selling price for a six-pack of fruit-soda is $4.50 (75% of $6).

Similarly, the wholesaler-distributor's margin is 33.3%, so the wholesaler-distributor's selling price is 66.7% of the retailer's selling price.

Therefore, the wholesaler-distributor's selling price for a six-pack of fruit-soda is $2.99 (66.7% of $4.50).

Finally, to find the manufacturer's price, we need to work backwards from the wholesaler-distributor's selling price. Since the manufacturer's price is 100% of the wholesaler-distributor's selling price, the manufacturer's price for a six-pack of fruit-soda is $2.99.