Bang and Olufsen is releasing a new line of audio speakers. They have positioned the speakers to sell for $250 in retail stores. They sell their speakers in North America through Petra, an audio components distributor, who then sells to individual retailers. If Petra traditionally marks their products up 35% and the average markup that retailers apply to audio speakers is 50%, what is the wholesale price at which B&O should list their speakers?

Bang and Olufsen is releasing a new line of audio speakers. They have positioned the speakers to sell for $250 in retail stores. They sell their speakers in North America through Petra, an audio components distributor, who then sells to individual retailers. If Petra traditionally marks their products up 35% and the average markup that retailers apply to audio speakers is 50%, what is the wholesale price at which B&O should list their speakers?

Bang and Olufsen is releasing a new line of audio speakers. They have positioned the speakers to sell for $250 in retail stores. They sell their speakers in North America through Petra, an audio components distributor, who then sells to individual retailers. If Petra traditionally marks their products up 35% and the average markup that retailers apply to audio speakers is 50%, what is the wholesale price at which B&O should list their speakers?



A. $163.00

B. $44.00

C. $81.25

D. $88.00

E. $125.00



Answer: C


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