Susan is looking for the best deal on a king-size mattress that has a wholesale price of $439. Help her compare the price of the mattress in different situations by completing the following. a)  Susan can buy the mattress from a distributor that does direct-to-customer sales. When selling directly to individual customers, this distributor marks up the wholesale price 50%. Ignoring tax, how much would Susan pay for the mattress if she gets it from this distributor? b) Susan can also go to a specialty store that she knows has the mattress. This specialty store gets it from a distributor who marks up the wholesale price 20%. Then the specialty store marks it up by an additional 30%. Ignoring tax, how much would Susan pay for the mattress at this specialty store? c) Select the true statement. Susan would pay less for the mattress if she gets it directly from the distributor. Susan would pay less for the mattress if she gets it at the specialty store. Susan would pay the same amount if she gets the mattress from the distributor or at the specialty store.

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
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Susan is looking for the best deal on a king-size mattress that has a wholesale price of $439. Help her compare the price of the mattress in different situations by completing the following.

a)  Susan can buy the mattress from a distributor that does direct-to-customer sales. When selling directly to individual customers, this distributor marks up the wholesale price 50%. Ignoring tax, how much would Susan pay for the mattress if she gets it from this distributor?

b) Susan can also go to a specialty store that she knows has the mattress. This specialty store gets it from a distributor who marks up the wholesale price 20%. Then the specialty store marks it up by an additional 30%. Ignoring tax, how much would Susan pay for the mattress at this specialty store?

c) Select the true statement.

  • Susan would pay less for the mattress if she gets it directly from the distributor.
  • Susan would pay less for the mattress if she gets it at the specialty store.
  • Susan would pay the same amount if she gets the mattress from the distributor or at the specialty store.
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