Question: Which of the following supply chains would yield...

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Metric Quiz 1 – Margins & Markups Question: Which of the following supply chains would yield the highest final selling price?
Question: If you are the final retailer, which of the following supply chains would result in the lowest retail price?
Assume an initial cost (e.g., $1): a) $1 * 1.5 = $1.50 Then, solve for the margin: $1.50 / 0.9 = $1.67 Then, solve for the margin: $1.50 / 0.85 = $1.96 (this is the lowest price) b) $1 / 0.5 = $2 Then, solve for the markup: 1.3 * $2 = $2.60 c) $1 * 1.75 = $1.75

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