A T-shirt Business Shalon has a t-shirt business where she sells her own line of designer shirts. She is in it for the money. But in order to make money from selling her t-shirts, she needs to make sure her prices are at the right price point both in terms of making money and giving her customers a good deal. Shalon needs to take into consideration things like the cost of her time spent designing the shirts, the cost to manufacture the shirt, and the cost of keeping the store open. After all these costs are calculated, then she needs to figure out how much more she needs to add so she can make a good living from her t-shirt business. The total cost to make each shirt for Shalon is Php100. Of course, Shalon wants to make a profit from selling each shirt, so she sells the shirt for Php 300. (a.) . How much of a mark-on is this? (Explain your answer.) Shalon wants to make sure she is competitive with other t-shirt businesses in town, so she does some investigating of her own. She visits another shop and she finds that this shop has a 100% mark-on. (b.) How much is this shop selling the shirts for? (Explain your answer.) Shalon is thinking that her prices might be a bit steep for the customers in the neighborhood based on her investigations. Now she is considering marking down her prices from Php300 to Php 200.(c.) How many percent does she need to markdown even if she sells a shirt for Php200 and still makes a profit? (Explain your answer.)
A T-shirt Business
Shalon has a t-shirt business where she sells her own line of designer shirts. She is in it for the money. But in order to make money from selling her t-shirts, she needs to make sure her prices are at the right price point both in terms of making money and giving her customers a good deal.
Shalon needs to take into consideration things like the cost of her time spent designing the shirts, the cost to manufacture the shirt, and the cost of keeping the store open. After all these costs are calculated, then she needs to figure out how much more she needs to add so she can make a good living from her t-shirt business.
The total cost to make each shirt for Shalon is Php100. Of course, Shalon wants to make a profit from selling each shirt, so she sells the shirt for Php 300. (a.) . How much of a mark-on is this? (Explain your answer.)
Shalon wants to make sure she is competitive with other t-shirt businesses in town, so she does some investigating of her own. She visits another shop and she finds that this shop has a 100% mark-on. (b.) How much is this shop selling the shirts for? (Explain your answer.)
Shalon is thinking that her prices might be a bit steep for the customers in the neighborhood based on her investigations. Now she is considering marking down her prices from Php300 to Php 200.(c.) How many percent does she need to markdown even if she sells a shirt for Php200 and still makes a profit? (Explain your answer.)
Then after a few months of operating her business, Shalon was just informed that there is going to be a special event, the grand opening of a basketball league, in just a few weeks. To help with the celebration, Shalon has created a special limited edition of t-shirts just for the event. Her cost to produce each shirt is Php120. She has a mark-on of 150% and she is offering coupons that give less 20%. (d.) How much is the special limited edition t-shirts selling price for this special event? (Explain your answer.)
Step by step
Solved in 2 steps
