A manufacturer distributed a new smart thermostat system through wholesalers and

Question

A manufacturer distributed a new smart thermostat system through wholesalers and retailers. The retail selling price was $877 and the wholesale price was $379. The manufacturers selling price was $169 and the manufacturing cost was $101. Use cost based method to determine the mark-up percentages for the wholesaler. Round up to the second decimal point. A manufacturer distributed a new smart thermostat system through wholesalers and retailers. The retail selling price was $877 and the wholesale price was $379. The manufacturers selling price was $169 and the manufacturing cost was $101. Use cost based method to determine the mark-up percentages for the wholesaler. Round up to the second decimal point.

Explanation / Answer

Manufacturer selling price = $ 169   (this is the cost to Wholesaler)

Cost to wholesaler = $ 169

Wholesale price = $ 379

Mark-up percent for the Wholesaler = (Wholesale price - Cost ) / Cost = (379 - 169)/169 = 124.26 %

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