A manufacturer sells a product for $45 to a wholesaler, and the wholesaler sells it to a retailer. The wholesaler's normal markup (based on selling price) is 25%. The retailer prices the item to consumers to include a 33% markup (also based on selling price). What is the selling price to the consumer?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter23: Other Topics In Working Capital Management
Section: Chapter Questions
Problem 8MC
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Please explain this financial accounting problem by applying valid financial principles.

A manufacturer sells a product for $45 to a
wholesaler, and the wholesaler sells it to a
retailer. The wholesaler's normal markup
(based on selling price) is 25%. The retailer
prices the item to consumers to include a
33% markup (also based on selling price).
What is the selling price to the consumer?
Transcribed Image Text:A manufacturer sells a product for $45 to a wholesaler, and the wholesaler sells it to a retailer. The wholesaler's normal markup (based on selling price) is 25%. The retailer prices the item to consumers to include a 33% markup (also based on selling price). What is the selling price to the consumer?
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