Retailers and wholesalers use traditional markups that they feel will yield a reasonable rate of profit. Answer the following set of problems.
1. The usual retail price of an item is $100. The manufacturer's cost to produce the item is $40. Retailers take a 50 percent markup and wholesalers take a 10 percent markup (markup is calculated on selling price, unless otherwise is indicated).
What is the retailer's markup in dollars?______________________________
What is the wholesale price?_______________________________________
What is the manufacturer's price?___________________________________
What is the manufacturer's markup percentage?_______________________