An advertisement has two 2 liter bottles and a 12 pack of "Bubbly-Cola". The top says "Speedy Supermarket." Moving down are the 2 liter bottles. Text around them is as follows. Sale 4/$5 2 Liter Bubbly-Cola Products Below the bottles is the 12 pack. Text around it is as follows. Sale $13/3 12 Pack Bubbly-Cola Products (a) If 2 liter Bubbly-Cola products cost Speedy $16.20 per case of 24 bottles, what is the amount of the markup (in $) and what is the percent markup on selling price per case? amount of the markup$ percent markup on selling price %? (b) If 12 pack Bubbly-Cola products have a markup of $8.55 per case of six 12 packs at Speedy, what are the cost (in $) and the percent markup on selling price per case? cost$? percent markup on selling price %? (c) Why has Speedy Supermarket chosen to use markup based on selling price? Speedy Supermarket is a manufacturer and therefore uses markup based on selling price. The markup based on selling price is greater than markup on cost. Speedy Supermarket is a retail store and therefore uses markup based on selling price. Speedy Supermarket can control how much they pay for items using markup based on selling price. __The markup based on selling price is easier to calculate than markup on cost.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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An advertisement has two 2 liter bottles and a 12 pack of "Bubbly-Cola".

The top says "Speedy Supermarket."
Moving down are the 2 liter bottles. Text around them is as follows.
- Sale
- 4/$5
- 2 Liter Bubbly-Cola Products
Below the bottles is the 12 pack. Text around it is as follows.
- Sale $13/3
- 12 Pack Bubbly-Cola Products

(a) If 2 liter Bubbly-Cola products cost Speedy $16.20 per case of 24 bottles, what is the amount of the markup (in $) and what is the percent markup on selling price per case?

amount of the markup$

percent markup on selling price %?

(b) If 12 pack Bubbly-Cola products have a markup of $8.55 per case of six 12 packs at Speedy, what are the cost (in $) and the percent markup on selling price per case?

cost$?

percent markup on selling price %?

__ Speedy Supermarket is a manufacturer and therefore uses markup based on selling price.

__The markup based on selling price is greater than markup on cost.

__Speedy Supermarket is a retail store and therefore uses markup based on selling price.

__Speedy Supermarket can control how much they pay for items using markup based on selling price.

__The markup based on selling price is easier to calculate than markup on cost.

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