A Virginia wine maker faces a variable cost of $6.75 per bottle, and makes a 50% margin when selling to a wholesaler. The wholesaler obtains a 25% margin by simply reselling to wine stores. Wine stores get a 40% margin on wine sold to consumers.
a. What is the unit margin for a bottle of wine for the wine maker?
b. What is the price of a bottle of this Virginia wine for the consumer?