Jersey Manufacturing uses a distribution channel that includes wholesalers to retailers to ultimate consumer. The Jerome Widget 1000 is priced to wholesale at $250.00. Jersey earns a 30% margin on each Widget 1000 unit. Jersey’s wholesalers markup each unit $75.00. Retailers typically charge $700.00 to customers during peak season for a Widget 1000, but the unit can be priced by retailers as low as $650.00 off season.

4. What is Jersey’s unit contribution to profit (assuming there are no other costs to be added on to the margin)?

5. What does it cost Jersey to manufacture each unit?

6. What is Jersey’s Markup on Cost percentage?