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Question: Carolina Crystals, a midrange jewelry store located at Harbor Village in San Diego, serves two clienteles: regular customers who purchase gifts and special-occasion jewelry year-round, and tourists visiting the city. Although tourism is high in San Diego most months of the year, the proprietor of Carolina Crystals, Amanda, knows that her regular customers tend to purchase more jewelry during November and December for Christmas presents; in late January and early February for Valentine's Day; and in late April and May for summer weddings. Typically, jewelry is marked up 100% based on cost, but Amanda adjusts her pricing throughout the year to reflect seasonal needs. Amanda always carries a selection of diamond engagement and eternity rings, a wide array of gold charms that appeal to tourists, both regular and baroque pearl strands, and other types of jewelry.
1. If Amanda purchases diamond rings at $1,200 each, what would be the regular selling price to her customers, assuming a 100% markup on cost?
2. If Amanda thinks that an 85% markup on cost is more appropriate for gold charms, what would be the selling price on a gold sailboat charm Amanda purchases for $135?
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