Answer:
This question is incomplete, the full question is as follows:
You work for a manufacturer Henkel International that sells a detergent additive, Oxy-Clean. You, the manufacturer (Henkel) produce the product for $4.52. This is your cost to manufacture the product.
Next, you (Henkel) sell the product to a retailer, Hornbacher's (a grocery store). Hence, the list price to the retailer (i.e. the price Henkel charges Hornbacher's for the product) is $5.78.
Then, Hornbacher's (the grocery store) sells the product to its customers. They sell the product for $12.00.
What is the markup on the COST for Henkel (the manufacturer). This is the profit the seller makes expressed as a percent of the COST THE SELLER PAID. (In the case of the manufacturer, it is the cost of the manufactured goods). Hence, it is a percent. For your answer, please go two decimal spots. Hence, you would type .70 instead of 70% in this exercise. Please do not place a % sign into the answer. (Make sure to read these carefully please to determine the SELLER).
The answer is: 0.28
Explanation:
Mark up is the additional cost charged by a producer or retailer to cover the costs of production and make a profit on sale of goods or services. Mark up is added as a percentage on cost. To add a markup on cost, the total costs to produce a good or offer a service are calculated. This amount is then adjusted for profit by adding a mark up. The gross profit (revenue/selling price less cost of sales/cost per unit) is divided by the cost to arrive at a mark-up percentage. In this case, Henkel sells to Hornbacher's at a gross profit on sale of ($5.78 -$4.52) = $1.26. Therefore, markup on cost for Henkel is: $1.26/$4.52 = 0.278761061. Rounded to 2 decimal places the answer is 0.28.
