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It looks like you've uploaded an image from a business-related quiz focusing on margins and pricing strategy. The problem involves calculating the manufacturer's cost per unit given that the retailer sells imported leather shoes for $123, with a margin of 19%, and the distributor buys the shoes directly from the manufacturer for $78. The manufacturer realizes a 62% margin when selling to the distributor.

Let me help you break down the problem and calculate the manufacturer's cost per unit.

### Steps to Solve:
1. **Retail Price**: The retailer sells the shoes to consumers for $123.
2. **Distributor Price**: The distributor buys the shoes from the manufacturer for $78.
3. **Manufacturer’s Margin**: The manufacturer has a 62% margin on the selling price of $78 to the distributor.

To find the manufacturer's cost per unit, use the formula:

\[
\text{Cost Price} = \text{Selling Price to Distributor} \times (1 - \text{Margin})
\]

The manufacturer's margin is 62%, so the cost per unit is:

\[
\text{Cost Price} = 78 \times (1 - 0.62)
\]
\[
\text{Cost Price} = 78 \times 0.38 = 29.64
\]

Therefore, the manufacturer's cost per unit is **$29.64**.

Would you like further details or have any other questions?

### Related Questions:
1. How is the retailer's margin of 19% incorporated into final pricing?
2. What is the impact on profit if the manufacturer reduces its margin to 50%?
3. How would an increase in distributor purchase price affect the manufacturer's margin?
4. What is the retailer's profit if they reduce their selling price to $115?
5. How can the manufacturer optimize their cost to achieve a higher margin?

### Tip:
Understanding the relationship between margins and pricing at different levels (manufacturer, distributor, retailer) is crucial for maximizing profit across the supply chain.

A distribution channel for imported Italian leather shoes includes a manufacturer, a distributor, and a retailer. The retailer sells the shoes to his consumers for $123 a pair, earning a margin of 19%. The distributor buys the product directly from the manufacturer for $78. The manufacturer realizes a 62% margin when selling to the distributor. What is the manufacturer's cost per unit?

Learn how to calculate the manufacturer's cost per unit based on a 62% margin when selling to a distributor for $78, with the retailer selling for $123 and earning a 19% margin. This problem explores essential concepts in pricing strategy and margin calculation.

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