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?
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| 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? |
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- Harold, the owner of Sweet Tunes Music, purchased acoustic guitars for $90 each and has marked them up by 19.00% of the cost. The overhead expenses were 9.00% of the cost. a. What is the regular selling price of each guitar? Round to the nearest cent b. What is the profit made on each guitar sold? Round to the nearest cent c. If he decides to offer a markdown of 6.00%, what would be the reduced selling price? Round to the nearest cent d. What profit or loss he would make on the sale of each guitar?Karens Quilts is considering the purchase of a new Long-arm Quilt Machine that will cost $17,500 and will increase her fixed costs by $119. What would happen if she purchased the new quilt machine to realize the variable cost savings of $5.00 per quilt, and what would happen if she raised her price by just $5.00? She feels confident that such a small price increase will not decrease the sales in units that will help her offset the increase in fixed costs. Given the following current prices how would the break-even in units and dollars change? Complete the monthly contribution margin income statement for each of these cases.Kylies Cookies is considering the purchase of a larger oven that will cost $2,200 and will increase her fixed costs by $59. What would happen if she purchased the new oven to realize the variable cost savings of $0.10 per cookie, and what would happen if she raised her price by just $0.20? She feels confident that such a small price increase will decrease the sales by only 25 units and may help her offset the increase in fixed costs. Given the following current prices how would the break-even in units and dollars change if she doesnt increase the selling price and if she does increase the selling price? Complete the monthly contribution margin income statement for each of these cases.
- Ingrid is planning to expand her business by taking on a new product that costs $7.56. In order to market this new product, $1307.00 must be spent on advertising. The suggested retail price for the product is $11.31. (a) If a price of $14.49 is chosen, how many units does she need to sell to break even? (b) If advertising is increased to $1674.00, and the price is kept at $11.31, how many units does she need to sell to break even?Shredder Frets, a brand-new manufacturer of guitars is looking at what price to charge for its new burning fingertips line. They want to determine at which selling price they would break even. They have a manufacturing capacity of 100 guitars. It will cost $400 for materials and labor to make each unit. The fixed costs are $15,000 annually. To break even, Shredder Frets would need to charge $ ______.00 for its guitar.Mark owns a company that sells sneakers of high quality. For each sneaker, the leather cost is SR 110 and the production cost is SR 70. The monthly cost for running the company is SR 32000 and the monthly cost for running the factory is SR 56000. If Mark predicted that he would only sell 550 sneakers, what selling price would make Mark break-even by selling this number of sneakers?
- Jose’, store manager for SportsHaven, does not know how to price a GE freezer that cost the store $580. Jose’ knows his boss wants a 25% markup on selling price. How much should Jose’ price the freezer?Your company has a customer who is shutting down a production line, and it is your responsibility to dispose of the extrusion machine. The company could keep it in inventory for a possible future product and estimates that the reservation value is $100,000. Your dealings on the secondhand market lead you to believe that if you commit to a price of $200,000, there is a 0.4 chance you will be able to sell the machine. If you commit to a price of $300,000, there is a 0.25 chance you will be able to sell the machine. If you commit to a price of $400,000, there is a 0.1 chance you will be able to sell the machine. These probabilities are summarized in the following table. For each posted price, enter the expected value of attempting to sell the machine at that price. (Hint: Be sure to take into account the value of the machine to your company in the event that you are not be able to sell the machine.) Posted Price Probability of Sale Expected Value ($) ($) $400,000 0.1 $300,000 0.25…Your company has a customer who is shutting down a production line, and it is your responsibility to dispose of the extrusion machine. The company could keep it in inventory for a possible future product and estimates that the reservation value is $150,000. Your dealings on the secondhand market lead you to believe that if you commit to a price of $200,000, there is a 0.5 chance you will be able to sell the machine. If you commit to a price of $250,000, there is a 0.3 chance you will be able to sell the machine. If you commit to a price of $300,000, there is a 0.1 chance you will be able to sell the machine. These probabilities are summarized in the following table. For each posted price, enter the expected value of attempting to sell the machine at that price. (Hint: Be sure to take into account the value of the machine to your company in the event that you are not be able to sell the machine.) Posted Price Probability of Sale Expected Value ($) ($) $300,000 0.1…
- A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided. If Reuben accepts the offer, what will the effect on profit be? Increase in profit of $1,600 if he buys the rolls Increase in profit of $1,200 if he buys the rolls Decline in profit of $1,200 if he buys the rolls Decline in profit of $1,600 if he buys the rollsJosé Ruiz wants to start a company that makes snowboards. Competitors sell a similar snowboard for $240 each. José believes he can produce a snowboard for a total cost of $200 per unit, and he plans a 25% markup on his total cost. Compute José’s planned selling price. Can José compete with his planned selling price?José Ruiz wants to start a company that makes snowboards. Competitors sell a similar snowboard for $240 each. José believes he can produce a snow board for a total cost of $200 per unit, and he plans a 25% markup on his total cost. Compute José’s planned selling price. Can José compete with his planned selling price?