RPM manufactures racks for CDs. Costs are $8.08 per rack. A wholesaler buys CD racks from RPM at $24.10 each, then sells them at $32.10 to retailers. The retailer sells the racks for $59.20 each to consumers.

How much more unit contribution does the retailer earn using margin instead of markup per sale?

CALCULATED VARIABLES: retail price(markup) = $39.51 retail price(margin) = $50.00 retail % margin per rack = 0.458 (45.8%) retail margin in dollars = $27.10

RPM's unit margin per rack=$16.02