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RPM manufactures racks for CDs. Costs are $13.50 per rack. A wholesaler buys CD racks...

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Accounting

RPM manufactures racks for CDs. Costs are $13.50 per rack. A wholesaler buys CD racks from RPM at $25.50 each, then sells them at $31.70 to retailers. The retailer sells the racks for $58.60 each to consumers.

How much more unit contribution does the retailer earn using margin instead of markup per sale?

CALCULATED VARIABLES: rpmark = $38.96 rpmarg = $49.35 rmarpct = 0.459 (45.9%) margin = $26.90

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