You are the sales manager at Bright Lights (Pty) Ltd, a hardware store. A promotion and awareness campaign has been planned for a range of solar lamps, fridges and water pumps. You are meeting with the CFO and need to prepare the pricing suggestions for the products. Some prices are calculated by a mark-up on cost and others as a margin on selling price. 300 30% mark-up on cost B 25% margin on selling price 50% mark-up on cost 2 000 D % mark-up on cost Tent lamp A Pond pump 1 200 Garden light 500 Car bar Home cooler 2 600 2 050 1 500 E % margin on selling price 2.1 Complete the table above by writing out answers for A to E. Round your answers to the nearest whole number. 2.2 The following transactions have taken place at Bright Lights over the past month. The company uses a periodic stock system. Purchases are therefore recorded during the year and a final stock count is done at year-end: Twenty pond pumps were purchased on credit for R18 000. Five car bars costing R10 000 were bought for cash. The supplier provided a 2% discount.
You are the sales manager at Bright Lights (Pty) Ltd, a hardware store. A promotion and awareness campaign has been planned for a range of solar lamps, fridges and water pumps. You are meeting with the CFO and need to prepare the pricing suggestions for the products. Some prices are calculated by a mark-up on cost and others as a margin on selling price. 300 30% mark-up on cost B 25% margin on selling price 50% mark-up on cost 2 000 D % mark-up on cost Tent lamp A Pond pump 1 200 Garden light 500 Car bar Home cooler 2 600 2 050 1 500 E % margin on selling price 2.1 Complete the table above by writing out answers for A to E. Round your answers to the nearest whole number. 2.2 The following transactions have taken place at Bright Lights over the past month. The company uses a periodic stock system. Purchases are therefore recorded during the year and a final stock count is done at year-end: Twenty pond pumps were purchased on credit for R18 000. Five car bars costing R10 000 were bought for cash. The supplier provided a 2% discount.
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 2PB: Mortech makes digital cameras for drones. Their basic digital camera uses $80 in variable costs and...
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