Question
A distribution chain for hotel room art includes the artist, a wholesaler, the hotel chain, and the individual hotel franchise owner. The artist sells each
A distribution chain for hotel room art includes the artist, a wholesaler, the hotel chain, and the individual hotel franchise owner. The artist sells each painting to the wholesaler for $80, realizing a percentage margin on the selling price of 75%. The wholesaler sells the art to the hotel chain for a percentage margin of 50%. The hotel chain then sells the art to its individual hotel franchise owners, and earns a percentage margin of 20%.
Due to a shortage of canvas, the cost for the artist to produce each painting goes up 50%. What is the hotel chain's selling price to the hotel franchise owner, if every member of the distribution chain maintains the same dollar margin?
A.$220
B.$230
C.$410
D.$210
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