Multiple Choice
TopKnotch Mfg. Co. has a production cost of $280. It sells its product to a wholesaler for $400. The wholesaler then sells the item to retailers for $500 and the retailers sell the item for $1,000. Which of the following is true about this "markup chain?"
A) The wholesaler's markup is 25 percent.
B) The manufacturer is taking a markup of 30 percent.
C) The retailers' markup is 100 percent.
D) None of these alternatives is true for this markup chain.
Correct Answer:
Verified
Correct Answer:
Verified
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