#1

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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#2

Brilliance Toothpaste sells at retail for $1.50 per tube. The manufacturing cost is $0.25 per tube and the fixed costs total $20,000. The manufacturer's margin is 50 per cent and the retailer's margin is 33 per cent. All margins are calculated on selling prices. On sales of 200,000 units, calculate the manufacturer's profit, the wholesaler's margin, and the retailer's margin.