Question: S2 Margin Analysis Spreadsheet A product is sold by a retailer to the consumer for $80. The retailer buys the product from a wholesaler for

S2 Margin Analysis Spreadsheet

A product is sold by a retailer to the consumer for $80. The retailer buys the product from a wholesaler for $60 and the wholesaler buys the product from the manufacturer for $30. What is the wholesale margin percentage?

A) 25% B) 33.3% C) 50% D) Other

S2 Margin Analysis Spreadsheet A product is sold

60 To calculate the margin % just plug in the prices below in C62, D62 and E62 and it will calculate the margin %. 61 Manufacturer Wholesale Retail 62 Selling price $10 $15 $20 63 Margin % 33.33% 25.00% 64 65 If you start with the manufacturer's selling price and you know the margin % required just plug in the margin % 66 below in D68 and E68 and the wholesale and retail selling price will be calculated: 67 Manufacturer Wholesale Retail 68 Margin % 33.33% 25.00% 69 Selling Price $10 $15.00 $20.00 70 71 If you start with the retailer's selling price of $3 in cell E75 and you know the margin % required just plug in the 72 margin % below in D74 and E74 and the wholesale and manufacturer selling price will be calculated: 73 Manufacturer Wholesale Retail 74 Margin % 25.00% 33.33% 75 Selling Price $1.50 $2.00 $3.00 76 93 Manufacturer Wholesale Retail 94 Mark-up % 33.33% 50.00% 95 Selling Price $1.50 $2.00 $3.00 96 97 The following table calculates relationship between Mark-up and Margin. Plug in the required mark-up % 98 in the table (D100 and E100) and it calculates the margin: 99 Wholesale Retail 100 Mark-up % 33.33% 50.00% 101 Margin% 25.00% 33.33% 102 103 The following table calculates relationship between margin and mark-up. Plug in the required margin% and the 104 table calculates the mark-up: 105 Wholesale Retail 106 Mark-up % 33.33% 100.00% This is Q.32 in Sample Exam. 107 Margin% 25.00% 50.00% 108 109 What if we now introduce another party into the channel, say an importer with a mark-up 10% in C111 we have: 110 Importer Wholesale Retail Mark-up on manufacturer's price 111 Mark-up % 10.00% 33.33% 50.00% 120% 112 Margin% 9.09% 25.00% 33.33% 113 114 Or if we set the margin % as: 115 Importer Wholesale Retail Mark-up on manufacturer's price 116 Mark-up % 10.00% 33.33% 49.99% 120% 117 Margin% 9.09% 25.00% 33.33%

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