Sorry I keep posting questions. Financial maths is hard.
A kitchen cupboard manufacturer is talking to a satisfied consumer. The consumer says he got a very good deal from the retailer, because he paid $604.80 (excluding GST) for a cupboard after getting a 20% discount. The manufacturer got $300 for the cupboard, and knows that the wholesaler uses a markup of 40%. What was the retailer's markup?
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What I did:
This is the way I see it.
Product is made by the manufacturer. The manufacturer sells it to a wholesaler. The wholesaler sells the product to the retailer. The retailer sells it to the customer. And, each time the price of the product gets bigger coz each stakeholder wants to make a profit. Is this chain correct?
So, the wholesaler bought the cupboard for $300 from the manufacturer. If the wholesaler wants to sell the cupboard to the retailer, they must markup the price.
300 * 1.4 = 420
The customer bought the cupboard from the retailer for $604.80. $604.80 is the total amount of money that the customer paid after 20% of the price was taken away from the price that the retailer set (this is the price that the retailer bought the cupboard for from the wholesaler, whatever that number is..)
What was the price of the cupboard before the 20% discount?
x - (x * 0.20) = 604.80
1x - 0.20x = 604.80
0.8x = 604.80
x = 756
Markup price from the retailer:
756 = 420 (1 + x)
756/420 = 1 + x
1.8 -1 = x
0.8 = x
Therefore, 80% was the retailer's markup...
Is my working out correct.. or completely wrong?
A kitchen cupboard manufacturer is talking to a satisfied consumer. The consumer says he got a very good deal from the retailer, because he paid $604.80 (excluding GST) for a cupboard after getting a 20% discount. The manufacturer got $300 for the cupboard, and knows that the wholesaler uses a markup of 40%. What was the retailer's markup?
-----
What I did:
This is the way I see it.
Product is made by the manufacturer. The manufacturer sells it to a wholesaler. The wholesaler sells the product to the retailer. The retailer sells it to the customer. And, each time the price of the product gets bigger coz each stakeholder wants to make a profit. Is this chain correct?
So, the wholesaler bought the cupboard for $300 from the manufacturer. If the wholesaler wants to sell the cupboard to the retailer, they must markup the price.
300 * 1.4 = 420
The customer bought the cupboard from the retailer for $604.80. $604.80 is the total amount of money that the customer paid after 20% of the price was taken away from the price that the retailer set (this is the price that the retailer bought the cupboard for from the wholesaler, whatever that number is..)
What was the price of the cupboard before the 20% discount?
x - (x * 0.20) = 604.80
1x - 0.20x = 604.80
0.8x = 604.80
x = 756
Markup price from the retailer:
756 = 420 (1 + x)
756/420 = 1 + x
1.8 -1 = x
0.8 = x
Therefore, 80% was the retailer's markup...
Is my working out correct.. or completely wrong?
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604.80 divided by 4 x 5 =756
$300 x 140 % = 420
756 minus 420 divided by 420 then % button = 80% mark up by retailer.
You've got it. Good job.
$300 x 140 % = 420
756 minus 420 divided by 420 then % button = 80% mark up by retailer.
You've got it. Good job.