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Kryger [21]
3 years ago
7

Shannon’s has developed a super-premium craft beer to be marketed as Shannon’s Irish Stout. The cost of production (brewing, can

ning, etc.) is about $4.00 per six pack. If Shannon’s needs a 12% margin, what will Shannon’s price per six pack be to its distributor, Miller of Denton? Assume the margin is expressed as a markup based on cost. Round your answer to the nearest penny. Do not include the dollar sign.
Business
1 answer:
Arte-miy333 [17]3 years ago
3 0

Answer:

$4.48

Explanation:

If Shannon needs to make a 12% markup based on cost, to obtain her minimum selling price to her distributor Miller of Denton, simply multiply the production cost per unit by 100% plus the desired markup.

If it costs her $4.00 to produce a six pack, her selling price should be:

P=1.12*\$4.00\\P=\$4.48

She should charge $4.48 per six pack.

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