Homework Help is Here – Start Your Trial Now!
Business
Economics
Many luxury sheets cost less than $200 to make but sell for more than $500 in retail stores. Some cost even more dash consumers pay almost $3,000 for Frett'e "Tangeri Pizzo" king-size luxury linens. The creators of a new brand of luxury linens, called Boll & Branch, have entered this market. They want to price their sheets lower than most brands but still want to earn an adequate margin on sales. The sheets come in a luxurious box that can be reused to store lingerie, jewelry, or other keepsakes. The Boll & Branch brand touts fair trade practices when sourcing its high-grade long-staple organic cotton from India. Given that the cost is $145 per king-size sheet set below, and assuming the manufacturer has total fixed costs of $400,000 and estimates first year sales will be 40,000 sets, determine the price to consumers if the company desire a 50 percent margin on sales. The cost per unit is $(Round to the nearest dollar.) The markup price is $ (Round to the nearest dollar.) O A. 155; 310 O B. 310; 155 O C. 145; 310 O D. 115: 310 O E. 155; 315

Many luxury sheets cost less than $200 to make but sell for more than $500 in retail stores. Some cost even more dash consumers pay almost $3,000 for Frett'e "Tangeri Pizzo" king-size luxury linens. The creators of a new brand of luxury linens, called Boll & Branch, have entered this market. They want to price their sheets lower than most brands but still want to earn an adequate margin on sales. The sheets come in a luxurious box that can be reused to store lingerie, jewelry, or other keepsakes. The Boll & Branch brand touts fair trade practices when sourcing its high-grade long-staple organic cotton from India. Given that the cost is $145 per king-size sheet set below, and assuming the manufacturer has total fixed costs of $400,000 and estimates first year sales will be 40,000 sets, determine the price to consumers if the company desire a 50 percent margin on sales. The cost per unit is $(Round to the nearest dollar.) The markup price is $ (Round to the nearest dollar.) O A. 155; 310 O B. 310; 155 O C. 145; 310 O D. 115: 310 O E. 155; 315

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question
Many luxury sheets cost less than $200 to make but sell for more than $500 in retail stores. Some cost even more dash consumers pay almost $3,000 for Frett'e "Tangeri Pizzo" king-size luxury linens. The creators of a new brand of luxury linens, called Boll & Branch, have entered this market. They want to price their sheets lower than most brands but still want to earn an adequate margin on sales. The sheets come in a luxurious box that can be reused to store lingerie, jewelry, or other keepsakes. The Boll & Branch brand touts fair trade practices when sourcing its high-grade long-staple organic cotton from India. Given that the cost is $145 per king-size sheet set below, and assuming the manufacturer has total fixed costs of $400,000 and estimates first year sales will be 40,000 sets, determine the price to consumers if the company desire a 50 percent margin on sales. The cost per unit is $_________ (Round to the nearest dollar.) The markup price is $ (Round to the nearest dollar.) O A. 155; 310 O B. 310; 155 O C. 145; 310 OD. 115: 310 O E. 155; 315
Transcribed Image Text:Many luxury sheets cost less than $200 to make but sell for more than $500 in retail stores. Some cost even more dash consumers pay almost $3,000 for Frett'e "Tangeri Pizzo" king-size luxury linens. The creators of a new brand of luxury linens, called Boll & Branch, have entered this market. They want to price their sheets lower than most brands but still want to earn an adequate margin on sales. The sheets come in a luxurious box that can be reused to store lingerie, jewelry, or other keepsakes. The Boll & Branch brand touts fair trade practices when sourcing its high-grade long-staple organic cotton from India. Given that the cost is $145 per king-size sheet set below, and assuming the manufacturer has total fixed costs of $400,000 and estimates first year sales will be 40,000 sets, determine the price to consumers if the company desire a 50 percent margin on sales. The cost per unit is $_________ (Round to the nearest dollar.) The markup price is $ (Round to the nearest dollar.) O A. 155; 310 O B. 310; 155 O C. 145; 310 OD. 115: 310 O E. 155; 315
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Decision Tree
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS