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For the following question the unit variable cost to make SD 721 is $100, and the fixed cost is $5,000,000 Anna Doors, CEO of Elsa, wanted to announce the use of cost-plus pricing in a pressconference, so she asked her assistant to calculate what the % markup would be if Elsamade exactly enough phones to fulfill orders from Numbers Inc. and then sold them at$175. Mr. Assistant moonlights as a student in a marketing class, so he knew how tocalculate the answer. What is the number that he came up with and how?Markup price = unit cost / (1 – desired return on sales) calculate your markup price

For the following question the unit variable cost to make SD 721 is $100, and the fixed cost is $5,000,000 Anna Doors, CEO of Elsa, wanted to announce the use of cost-plus pricing in a pressconference, so she asked her assistant to calculate what the % markup would be if Elsamade exactly enough phones to fulfill orders from Numbers Inc. and then sold them at$175. Mr. Assistant moonlights as a student in a marketing class, so he knew how tocalculate the answer. What is the number that he came up with and how?Markup price = unit cost / (1 – desired return on sales) calculate your markup price

Principles Of Marketing
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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For the following question the unit variable cost to make SD 721 is $100, and the fixed cost is $5,000,000

Anna Doors, CEO of Elsa, wanted to announce the use of cost-plus pricing in a press
conference, so she asked her assistant to calculate what the % markup would be if Elsa
made exactly enough phones to fulfill orders from Numbers Inc. and then sold them at
$175. Mr. Assistant moonlights as a student in a marketing class, so he knew how to
calculate the answer. What is the number that he came up with and how?
Markup price = unit cost / (1 – desired return on sales) calculate your markup price
 
 
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