Q5. Miss Zamzam Al Bulushi, an professional consultant has recently bought the new office. She went to the Emax Electronics to buy the Air Conditioner for her office. The Emax has wide range of AC’s but she selects LG extra cool model. The product was priced RO 350 and Emax was offering 10% discount on the selling price. During the conversation with sales person, Zamzam came to know that Emax had bought this AC from the manufacturer for RO 300. Finally she decided to buy the AC. a) What is markup and how it useful in deciding the price of the product? Discuss b) What is the Emax’s markup rate on cost and how much is the markup amount? c) What do you mean by discount and how discount is useful tool for the seller?

Q5. Miss Zamzam Al Bulushi, an professional consultant has recently bought the new office. She went to the Emax Electronics to buy the Air Conditioner for her office. The Emax has wide range of AC’s but she selects LG extra cool model. The product was priced RO 350 and Emax was offering 10% discount on the selling price. During the conversation with sales person, Zamzam came to know that Emax had bought this AC from the manufacturer for RO 300. Finally she decided to buy the AC. a) What is markup and how it useful in deciding the price of the product? Discuss b) What is the Emax’s markup rate on cost and how much is the markup amount? c) What do you mean by discount and how discount is useful tool for the seller?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 1EA: Garrison Boutique, a small novelty store, just spent $4,000 on a new software program that will help...

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Miss Zamzam Al Bulushi, an professional consultant has recently bought the new office. She went to the Emax Electronics to buy the Air Conditioner for her office. The Emax has wide range of AC’s but she selects LG extra cool model. The product was priced RO 350 and Emax was offering 10% discount on the selling price. During the conversation with sales person, Zamzam came to know that Emax had bought this AC from the manufacturer for RO 300. Finally she decided to buy the AC. What is markup and how it useful in deciding the price of the product? Discuss What is the Emax’s markup rate on cost and how much is the markup amount? What do you mean by discount and how discount is useful tool for the seller? How much amount Zamzam paid to buy the AC? If Emax’s rate of markup is 20% on cost, what would be the selling price of the AC?
1. Adam and his friend, Akmal, are both talented painters. Last year, they started paintingpostcards which they gave to their friends as a gift. After that, they began selling thosepostcards at a craft fair and sold them for fun. At the last fair, a buyer who really likedthe postcards and offered them the contract to paint 500 postcards of a specific designfor a price of RM2,000. With the increase in demand, Adam and Akmal decided toopen a business and named it as 4A Craft. Each postcard priced at RM4.00. Variableoperating costs amounted to RM1.50 per postcard. To produce the postcards for thecontract, they have to buy a specific machine for cutting the postcard, which cost theamount of RM700.(i) Solve for 4A Craft’s operating breakeven point value.(ii) Solve for of 4A Craft’s EBIT value of that contract.(iii) If Adam decides to renegotiate the contract at the price of RM5.00 perpostcard, solve for the new value of EBIT.(iv) If the buyer refuses to pay more than RM4.00 per postcard,…
Garrison Boutique, a small novelty store, just spent $4,000 on a new software program that will help in organizing its inventory. Due to the steep learning curve required to use the new software, Garrison must decide between hiring two part-time college students or one full-time employee. Each college student would work 20 hours per week, and would earn $1 S per hour. The full-time employee would work 40 hours per week and would earn $15 per hour plus the equivalent of $2 per hour in benefits. Employees are given two polo shirts to wear as their uniform. The polo-shirts cost Garrison $10 each. What are the relevant costs, relevant revenues, sunk costs, and opportunity costs for Garrison?
The business manager of an RSO has a choice of purchasing T-shirts for 500 students from two suppliers. Alpha T offers the shirt to be acquired at P300 each with print 500 pieces and silk screen cost of P1,000 for 500 pieces. If the RSO will buy less than 500 pieces, it will be charged at P315each. Beta T, another supplier offers the T-shirt at P187 each, charges printing at P10,000 at a higher level of printing technology for every 300 pieces, and P75/shirt for ink and labor. Record shows that sales come from 75% of the students buy T-shirts. If only 80% of the students are targeted to serve, which supplier will you choose? a) Alpha T b) Beta T c) Either of the two supplier d) none of the supplier
A Department Store paid its supplier $2500 for a Smart TV Set On January 8, the department store marked the Smart TV Set up 40% on selling price. As a special promotion, the department store marked the Smart TV Set down 20% on February 2 and market it 15% up on March 8. No one purchased the Smart TV Set, so the department store marked it up again 5% on March 15. What was the selling price of the Smart TV Set on March 15? I need solution within one hour.. please solve it by using formula
Annie bought one dozen smartphones for P200,000.00 with a discount of 5%. She sold half dozen at a price of P18,000 00per unit. However, a new model of smartphone became available in the market, so she sold the remaining half dozen @P12,000.00 each unit. What was her profit or loss? Compute the following requirements: a. Gross Profit Rate b. Operating profit margin rate c. Net profit margin rate d. Return on Investment
c) Mail and his friend, Akmal, are both talented painters. Last year, they started painting postcards which they gave to their friends as a gift. After that, they began selling those postcards at a craft fair and sold them for fun. At the last fair, a buyer who really liked the postcards and offered them the contract to paint 500 postcards of a specific design for a price of RM2,000. With the increase in demand, Adam and Akmal decided to open a business and named it as 4A Craft. Each postcard priced at RM4.00. Variable operating costs amounted to RM1.50 per postcard. To produce the postcards for the contract, they have to buy a specific machine for cutting the postcard, which cost the amount of RM700. (i) Solve for 4A Craft’s operating breakeven point value ii)Solve for of 4A Craft’s EBIT value of that contract. If mail decides to renegotiate the contract at the price of RM5.00 per postcard, solve for the new value of EBIT. iv)If the buyer refuses to pay more than RM4.00 per…
Annie bought one dozen smartphones for 200,000.00 with a discount of 5%.she sold half dozen at a price of 18,000 per unit.However,a new model of smartphone became available in the market,so she sold the remaining half dozen 12,000 each unit.what was her profit or loss? Compute the following requirements: A.Gross profit rate B.Operating profit margin rate C. Net profit margin rate D. Return on Investment
Annie bought one dozen smartphones for P200,000.00 with a discount of 5%.She sold half dozen at a price of P18,000.00 per unit. However, a new modelof smartphone became available in the market, so she sold the remaining halfdozen @ P12,000.00 each unit. What was herNet profit margin rate
Annie bought one dozen smartphones for P200,000.00 with a discount of 5%. She sold half dozen at a price of P18,000.00 per unit. However, a new model of smartphone became available in the market, so she sold the remaining half dozen at P12,000.00 each unit. What was her profit or loss? a. Gross profit rate b. Operating profit margin rate c. Net profit margin rate d. Return of investment
Suppose your company sells a 3 pack of lenses that attach to smart phones to improve the quality of pictures people take. You pay 29.95 for each 3 Pack and sell them for 59.95. What is hyour Cost of Goods Sold Perrcentage for htis item? Suppose you sell 8,000 of the 3 pack of lenses described in question 3 above in one year. Your cost on each 3 pack is 29.95 and you sell them for 59.95. If your operating expenses for the year total 144,080, what are your net income and net profit margin percentage?
The Shirt Works sells a large variety of tee shirts and sweatshirts. Steve Hooper, the owner, is thinking ofexpanding his sales by hiring local high school students, on a commission basis, to sell sweatshirts bearingthe name and mascot of the local high school.These sweatshirts would have to be ordered from the manufacturer six weeks in advance, and theycould not be returned because of the unique printing required. The sweatshirts would cost Mr. Hooper$8 each with a minimum order of 75 sweatshirts. Any additional sweatshirts would have to be ordered inincrements of 75.Since Mr. Hooper’s plan would not require any additional facilities, the only costs associated with the project would be the costs of the sweatshirts and the costs of the sales commissions. The selling price of the sweatshirts would be $13.50 each. Mr. Hooper would pay the students a commission of $1.50 for each shirt sold.Required:1. To make the project worthwhile, Mr. Hooper would require a $1,200 profit for the first…