Question: The manufacturing costs, all variable, for a product are $1.50 per unit. Wholesaler margins are 50 per cent and retailer margins are 75 per cent

The manufacturing costs, all variable, for a product are $1.50 per unit. Wholesaler margins are 50 per cent and retailer margins are 75 per cent (both calculated as a percentage of their respective selling prices). The manufacturer wants to make a minimum of $100,000 profit over and above fixed costs of $50,000.

What will be the minimum retail selling price if the manufacturer produces only 10,000 units?

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