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The Following Questions Are Linked to This Scenario: a Firm

Question 71

Multiple Choice

The Following Questions are linked to this scenario: A firm wishes to calculate its maximum acceptable costs under two scenarios: direct or indirect distribution.
-Under the indirect distribution alternative, the shoe manufacturer sells its products via independent wholesalers and retailers. Each of the three parties requires a 30 percent markup. If consumers are willing to pay $159 for the product, the manufacturer's maximum acceptable cost


A) is $46.75.
B) is $54.54.
C) is $59.00.
D) cannot be determined based on the data provided.

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