Case summary:
Reseller margins are the main external factor, which must be considered by manufacturers. Retailers are the ones who fix the final price for goods to customers. Therefore, manufacturers must suggest retail price by subtracting the profits of resellers who sell the goods to customers. After considering this, manufacturer will know at what price the product should be sold to resellers that helps in the calculation of break even.
To determine: The price at which that manufacturers sell the goods to the wholesalers.
Wholesaler:
Wholesaler is a firm or person who purchases huge quantity of goods from various producers, store them in their warehouse and resell them to the retailers.
The method of changing raw materials into finished products using different procedures and tools is known as manufacturing.
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