A new hd television set has a retail price of $5000. the price charged by the television manufacturer to the distributor is $1687.50. assuming that the distributor has a markup of 25%, what is the retail markup percentage?

Respuesta :

Given:
retail price: 5,000
manufacturer price: 1,687.50
distributor has mark-up of 25%

Flow of the product: 
manufacturer ↔ distributor ↔ retailer ↔ customer

1,687.50 * 1.25 = 2,109.38  distributor price

5000 - 2,109.38 = 2,890.62 
2,890.62 / 2,109.38 = 1.37
1.37 x 100% = 137%

The retail markup percentage is 137%.