Margin Calculations

1. A retailer who is selling a product at $6.00 and buying the same product from a wholesaler for $3.75 is obtaining a _______________percent margin on his/her goods (margin based on percent of selling price).

2. What would be the margin is question 1 if the retailer calculated margin based on cost?

3. What is the retailers margin (as a percentage of cost) given the following information? - Retail selling price $18.50 - Manufacturers selling price $8.00

4. Suppose manufacturer wishers to have her power drills sold at retail for $19.00. The retailer demands a 40% margin (based on percentage of selling price) and the wholesaler a 20% margin (based on percentage of cost). At what price would the manufacturer have to sell the drill to the wholesaler to obtain the desired retail pricing?

5. Next Inc. recently shipped its first product the Next Computer, which has a retail price of $9,995. If Business Land, Nexts distributor, receives a 30% margin on its retail prices, what is Nexts selling price to Business Land? (margin based on percent of selling price)