Question

Many times, margin, instead of retailing price, becomes the firm's decision variable. Suppose we notice Kroger is selling Dove at $0.99 per bar. We also know the manufacturing cost of Dove by its producer, Unilever, is $0.6 per bar, and the manufacturer's margin is 40%. Based on the cost plus pricing formula we discussed in class [ P=C+m%*C], we could figure out Kroger's margin on
Dove is about _______.
a. 18%
b. 25%
c. 38%
d. 65%

Answer 1

Dove is about ___38%