Question
RPM manufactures racks for CDs. Costs are $13.50 per rack. A wholesaler buys CD racks from RPM at $25.50 each, then sells them at $31.70
RPM manufactures racks for CDs. Costs are $13.50 per rack. A wholesaler buys CD racks from RPM at $25.50 each, then sells them at $31.70 to retailers. The retailer sells the racks for $58.60 each to consumers.
How much more unit contribution does the retailer earn using margin instead of markup per sale?
CALCULATED VARIABLES: rpmark = $38.96 rpmarg = $49.35 rmarpct = 0.459 (45.9%) margin = $26.90
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Financial Accounting Impact On Decision Makers
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
1111464936, 978-1111464936
