Reference no: EM132697937
LU 1a- Solve the following situations (markups based on cost):
1. Irene Westing bought a desk for $800 from an office supply house. She plans to sell the desk for $1,200. What is Irene's dollar markup? What is her percent markup on cost? Check your answer.
2. Suki Komar bought dolls for her toy store that cost $14 each. To make her desired profit, Suki must mark up each doll 38% on cost. What is the dollar markup? What is the selling price of each doll? Check your answer.
3. Jay Lyman sells calculators. His competitor sells a new calculator line for $16 each. Jay needs a 42% markup on cost to make his desired profit, and he must meet price competition. At what cost can Jay afford to bring these calculators into the store? What is the dollar markup? Check your answer.
LU 8-2a EXTRA PRACTICE QUIZ WITH WORKED-OUT SOLUTIONS Solve the following situations (markups based on selling price).
1. Irene Westing bought a desk for $800 from an office supply house. She plans to sell the desk for $1,200. What is Irene's dollar markup? What is her percent markup on selling price (rounded to the nearest tenth percent)? Check your answer. Selling price will be slightly off due to rounding.
2. Suki Komar bought dolls for her toy store that cost $14 each. To make her desired profit, Suki must mark up each doll 38% on selling price. What is the selling price of each doll? What is the dollar markup? Check your answer.
3. Jay Lyman sells calculators. His competitor sells a new calculator line for $16 each. Jay needs a 42% markup on the selling price to make his desired profit, and he must meet price competition. What is Jay's dollar markup? At what cost can Jay afford to bring these calculators into the store? Check your answer.
4. Dan Flow sells wrenches for $12 that cost $7. What is Dan's percent markup on cost? Round to the nearest tenth percent. What is Dan's percent markup on selling price? Check your answer.
LU 8-3a EXTRA PRACTICE QUIZ WITH WORKED-OUT SOLUTIONS
1. Sunshine Music Shop bought a stereo for $800 and marked it up 30% on selling price. To promote customer interest, Sunshine marked the stereo down 10% for 1 week. Since business was slow, Sunshine marked the stereo down an additional 5%. After a week, Sunshine marked the stereo up 2%. What is the new selling price of the stereo to the nearest cent? What is the markdown percent based on the original selling price to the nearest hundredth percent?
2. Alvin Rose owns a fruit and vegetable stand. He knows that he cannot sell all his produce at full price. Some of his produce will be markdowns, and he will throw out some produce. Alvin must put a high enough price on the produce to cover markdowns and rotted produce and still make his desired profit. Alvin bought 500 pounds of tomatoes at 16 cents per pound. He expects a 10% spoilage and marks up tomatoes 55% on cost. What price per pound should Alvin charge for the tomatoes?
LU 8-4a EXTRA PRACTICE QUIZ WITH WORKED-OUT SOLUTIONS
Angel Company produces car radios. Given the following, calculate (1) the contribution margin (CM) and (2) the breakeven point (BE) for Angel Company. $96,000 $240 Fixed cost (FC) Selling price (S) per radio Variable cost (VC) per radio $80