H5. Gabriella was in the business of purchasing sculptures from Brazil and selling them in Toronto at her boutique. On one consignment listed at $2,400, she received trade discounts of 9.00%, 7.00%, and 8.00%. The overhead expenses were 16.00% of her costs and she wanted to make a profit of 34.00% on cost. a. What is the regular selling price of the sculptures? b. Calculate the profit she will make if she decides to markdown the selling price by 16.00%. c. Calculate the maximum rate of markdown that she can offer so that she breaks even on the sale.
H5. Gabriella was in the business of purchasing sculptures from Brazil and selling them in Toronto at her boutique. On one consignment listed at $2,400, she received trade discounts of 9.00%, 7.00%, and 8.00%. The overhead expenses were 16.00% of her costs and she wanted to make a profit of 34.00% on cost. a. What is the regular selling price of the sculptures? b. Calculate the profit she will make if she decides to markdown the selling price by 16.00%. c. Calculate the maximum rate of markdown that she can offer so that she breaks even on the sale.
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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H5.
Gabriella was in the business of purchasing sculptures from Brazil and selling them in Toronto at her boutique. On one consignment listed at $2,400, she received trade discounts of 9.00%, 7.00%, and 8.00%. The overhead expenses were 16.00% of her costs and she wanted to make a profit of 34.00% on cost. a. What is the regular selling price of the sculptures? b. Calculate the profit she will make if she decides to markdown the selling price by 16.00%. c. Calculate the maximum rate of markdown that she can offer so that she breaks even on the sale.
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