An Item Cost a Manufacturer $4 to Produce

question 36

Multiple Choice

An item cost a manufacturer $4 to produce.It has a wholesale trade discount of 66% and a retail trade discount of 50%.The list price of the item is $15.Assuming the retailer sold the item for $12,the dollar gross margins received by the manufacturer,wholesaler,and retailer are respectively:

• A) $5.90, $2.40, $4.50.
• B) $4.50, $1.10, $2.40.
• C) $1.10, $2.40, $4.50.
• D) $1.40, $2.50, $7.50.
• E) $2.64, $2.40, $6.96.

Understand the concepts of supernormal growth and growing perpetuity in relation to stocks.

Comprehend the relationship between stock prices, dividends, and required rates of return.

Explore the legal and financial distinctions between different types of stocks and securities.

Understand the drivers and benefits of globalizing operations.

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Definitions:

High-Tech Firm

A company that operates in industries involving advanced technological innovation and research and development in fields like information technology, biotechnology, and engineering.

Head Coaches

Individuals responsible for guiding, directing, and overseeing the strategy and training of sports teams or specific segments of teams.

External Candidates

Individuals who are not current employees of an organization but apply for job vacancies from outside the company.

Professional Sports Teams

Organized groups of athletes who compete in sporting events at the highest level of their sport, often for entertainment and competition.