Brian May, guitarist for Queen, does not know how to price his signature Antique Cherry Special that cost him L280 to make. He knows he wants 85% markup on cost. What price should Brian May ask for the guitar?

Brian May, guitarist for Queen, does not know how to price his signature Antique Cherry Special that cost him L280 to make. He knows he wants 85% markup on cost. What price should Brian May ask for the guitar?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Nicolas has purchased a streaming audio service for $8.00 per month. As he listens to more songs in a month he spread this fixed cost over a larger number of songs, and therefore his cost per song decreases the more songs he listens to. One if his friends says to Nicolas: “The more music you listen to, the less you pay per song so you should spend all your time listening to music.” Please explain what is wrong with the friend’s statement.
Kim works at a sports store and needs to determine the selling price for running shoes. The running shoes have a cost of $120. The manager asked Kim to price the running shoes with a 60% target gross margin. Kim has priced the running shoes with a 60% markup percentage.Required:1. What selling price does the manager want? 2. What selling price has Kim calculated? 3. If there are 42 running shoes, how much will the store lose in sales if the price is not corrected?
Curt sells music CDs. He pays $9 for a CD and uses a 33% markup on cost. At what price should Curt resell the CD?
Maureen is currently looking into a business opportunity that will require her to manufacture branded match T-shirts for a local cricket club. Although she thinks it might be a good opportunity, she is a bit wary of accepting the contract as her free time is limited and she will only be able to produce 100 T-shirts per month. T-shirts will be sold at R200 each to club members. pendent institute of tducation Pty ud 2020 The costs associated with the opportunity are as follows Description Costs Cost of material for T-shirt R40 per shirt Cost of printing RS per shirt Labour costs R25 per shirt Variable overhead costs R10 per shirt Fixed overhead costs RIS 000 per month Required: Calculate the break even point in units and advise Maureen whether she should take up the opportunity or not Provide a reason for your answer.
Mme. Giselle's boutique in Cleveland, Ohio is planning to sell a Parisian frock. If the public view it as being the latest style, the frocks will be worth $12,000. However, if the frocks are viewed as passe, they will be worth only $3,000. If the probability that they are stylish is 10%, what is the expected value of the frocks? The expected value of the frocks (EV) is EV $ (Enter your response rounded to two decimal places.)
Darren Mack owns the "Gas n' Go" convenience store and gas station. After hearing a marketing lecture, he realizes that it might be possible to draw more customers to his high-margin convenience store by selling his gasoline at a lower price. However, the "Gas n' Go' is unable to qualify for volume discounts on its gasoline purchases, and therefore cannot sell gasoline for profit if the price is lowered. Each new pump will cost $95,000 to install, but will increase customer traffic in the store by 13,000 customers per year. Also, because the "Gas n' Go" would be selling its gasoline at no profit, Darren plans on increasing the profit margin on convenience store items incrementally over the next five years. Assume a discount rate of 8 percent. The projected convenience store sales per customer and the projected profit margin for the next five years are given in the table below. i Year 1 23 $5 $5.50 $7 $9 $11 a. What is the NPV of the next five years of cash flows if Darren had four new…
Kate figures that based on her target ROS she will have to sell 20, 500 units of PickleKeeper, a storage unit for cucumbers. Kate sells the product direct to consumers for $0.59 and spends $ 0.29 per unit to manufacture and sell it. With fixed costs of $5,000, her target ROS % must be around 9.5%. (Round your answer to the nearest 50 units when choosing an option from below). Question 1 options: True False
Joy, a sole proprietor involved in AirBnB, needs to sell almost all of his apartments. The selling prices were originally 500,000 on average. Because of circumstances, she had to quickly sell these at 350,000 on average less a 10% commission payable to whoever referred the buyers to her. What is the depreciated replacement value?
Last week Santiago found a new pair of red Nike Air Soles in the parking lot. He had just paid $120 to buy a pair of blue Nike Air Soles a few days earlier. A friend offers $80 to buy the pair of red Air Soles. Santiago says no and decides to keep both pairs for himself. The opportunity cost of this decision is how much
Misu Sheet, owner of the Bedspread Shop, knows his customers will pay no more than $155 for a comforter. Misu Sheet wants to advertise the comforter as "percent markup on cost." a. What is the equivalent rate of percent markup on cost compared to the 20% markup on selling price? Note: Round your answer to the nearest hundredth percent. Rate of percent 96 b. Is this a wise marketing decision? Yes No Help Save & Exit
You are trying to decide whether or not to extend credit to a particular customer. Your variable cost is $10 per unit; the selling price is $14. This customer wants to buy 100 units today and pay in 60 days. You think there is a 10% chance of default. The required return is 3% per 60 days. Should you extend credit? Assume this is a one-time sale and the customer will not buy if credit is not extended.
8. Maria, store manager for SportsHaven, does not know how to price a garden tractor that cost the store $349. Maria knows her boss wants a 45% markup on cost. Can you help Maria price the garden tractor? (Round your answer to the nearest cent.)