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MUSICNOW IS A RETAIL STORE THAT SELLS CDS TO CONSUMERS. MUSIC NOW PURCHASES THE CDS IT SELLS FROM A WHOLESALER WHO BUYS THEM FROM A
MUSICNOW IS A RETAIL STORE THAT SELLS CDS TO CONSUMERS. MUSIC NOW PURCHASES THE CDS IT
SELLS FROM A WHOLESALER WHO BUYS THEM FROM A MANUFACTURER. THE WHOLESALER GETS A 20%
CONTRIBUTION MARGIN ON ITS SELLING PRICE. MUSIC NOW USES COST-PLUS PRICING TO DETERMINE
ITS SELLING PRICE, MARKING UP CDS 40%. IF THE MANUFACTURER SELLS A CD TO THE WHOLESALER
FOR $5, WHAT IS MUSIC NOWS SELLING PRICE TO CONSUMERS?
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