Please do not give solution in image format thanku RPM manufactures racks for CDs. Costs are$13.70 per rack. A wholesaler buys CDracks from RPM at $23.50 each, then sellsthem at $34.70 to retailers. The retailer sellsthe racks for $42.30 each to consumers.If the wholesaler decides to drop their priceto the retailer by $5/unit and the retailermaintains the same margin % (18%)calculated in the previous question, whatwill be the price to the end customer forthe CD rack now?

Markup method is one of the various pricing methods in the cost and…

RPM manufactures racks for CDs. Costs are $13.70 per rack. A wholesaler buys CD racks from RPM at $23.50 each, then sells them at $34.70 to retailers. The retailer sells the racks for $42.30 each to consumers.

RPM manufactures racks for CDs. Costs are $13.70 per rack. A wholesaler buys CD racks from RPM at $23.50 each, then sells them at $34.70 to retailers. The retailer sells the racks for $42.30 each to consumers.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Please do not give solution in image format thanku

RPM manufactures racks for CDs. Costs are
$13.70 per rack. A wholesaler buys CD
racks from RPM at $23.50 each, then sells
them at $34.70 to retailers. The retailer sells
the racks for $42.30 each to consumers.
If the wholesaler decides to drop their price
to the retailer by $5/unit and the retailer
maintains the same margin % (18%)
calculated in the previous question, what
will be the price to the end customer for
the CD rack now?

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