If a manufacturer sells its laundry detergent to a wholesaler for $2.50, at what price will the wholesaler sell it to a retailer if the wholesaler wants a 15 percent margin based on the selling price?
Consumers typically buy products such as toiletries, food, and clothing from retailers rather than directly from the manufacturer. Likewise, retailers buy from wholesalers. Resellers perform functions for the manufacturer and the consumer and mark up the price to reflect that value. Refer to Appendix 2 to answer the following questions.