Percent markup on selling price

Assignment Help Business Management

Reference no: EM131804439

You read in the chapter about the dangers of pricing products too low. It seems so obviously wrong, but do companies really price their products so low that they won't make any money? After all, companies are in business to make money, and if they don't, they're probably not in business for very long. Let's take a deeper look at the effects of pricing products too low or creating too deep discounts during sale periods.31

1. The average markup for a produce department is 28 percent on selling price. When sold at 28 percent markup on selling price, bananas usually account for 25 percent of department sales and 25 percent of department markup. This week, because bananas were on special sale at the retailer's cost, the department sold twice as many pounds of bananas as usual. However, they were sold at zero markup. If all other things remain the same, what is the average markup on selling price for the entire produce department this week?

Reference no: EM131804439

Questions Cloud

Role of pricing during periods of inflation and recession : Describe the role of pricing during periods of inflation and recession. Marketing managers employ cost-oriented and demand-oriented tactics during periods.

Discuss the possible marketing implications : Discuss the possible marketing implications of the recent trend toward supercenters, which combine a supermarket and a full-line discount store.

What is the forecasted interest income : Assume the common stock and paid in capital will stay same for the coming year. What is the forecasted Interest Income for year 2011

Prepare the required journal entries for sandhill company : Sandhill co. uses the net method to account for cash discounts. On june 1, 2017, it made sales. Prepare the required journal entries for Sandhill company.

Percent markup on selling price : The average markup for a produce department is 28 percent on selling price. When sold at 28 percent markup on selling price, bananas usually account

Describe the specific marketing strategy : Describe the specific Marketing Strategy you are recommending to complement the Porter's strategy the company is pursuing.

Explain the nonstore retailing techniques : Discuss nonstore retailing techniques. Nonstore retailing, which is shopping outside a store setting, has three major categories.

Ama statement of ethics : One retailer says that he is just making shoppers happy that they got a great deal when he inflates the retail price before discounting.

Design a simulation to help jane : Design a simulation to help Jane determine how many order pickers she should hire so that demand is satisfied 97.5% of the time.

User Account

All Pages