A Manufacturer Does Marketing Research and Estimates That Consumers Will

Multiple Choice

A manufacturer does marketing research and estimates that consumers will accept a manufacturer's suggested retail price of $50 for a jacket. The manufacturer expects to offer trade discount terms of 40/10/5 to retailers, wholesalers, and agents in its marketing channel. What price will the manufacturer receive for the jacket?

A) $47.50
B) $45.00
C) $30.00
D) $27.50
E) $25.65