Bicycle Corp. is a manufacturer of high-speed racing bikes. The marketing manager suggests a retail price of $500 per bicycle, available in stores nationwide. The corporation sells the bikes to a wholesaler, who in turn sells them to a merchandiser who is responsible for delivering the bikes to the retail stores. The margins in the channel are as follows: retailer = 30%, wholesaler = 10%, and merchandiser = 5%. What is Bicycle Corp.’s selling price?

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To calculate Bicycle Corps selling price we need to take into account the margins of each party invo... View the full answer