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3 February, 14:51

A new hd television set has a retail price of $5000. the price charged by the television manufacturer to the distributor is $1687.50. assuming that the distributor has a markup of 25%, what is the retail markup percentage?

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  1. 3 February, 15:25
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    Given:

    retail price: 5,000

    manufacturer price: 1,687.50

    distributor has mark-up of 25%

    Flow of the product:

    manufacturer ↔ distributor ↔ retailer ↔ customer

    1,687.50 * 1.25 = 2,109.38 distributor price

    5000 - 2,109.38 = 2,890.62

    2,890.62 / 2,109.38 = 1.37

    1.37 x 100% = 137%

    The retail markup percentage is 137%.
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