If Costco pays $37.50 for the vacuum cleaner shown here, a. What is the percent markup based on selling price? b. If Costco pays $1.50 to the insurance company for each product replacement policy sold, what is the percent markup based on selling price of the vacuum cleaner and policy combination? c. If 6.000 vacuum cleaners are sold in a season and 40 % are sold with the insurance policy, how many additional "markup dollars." the gross margin, was made by offering the policy? d. (Optional) As a housewares buyer for Costco, what is your opinion of such insurance policies, considering their effect on the “profit picture" of the department? How can you sell more policies?

BuyFind

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
Publisher: Cengage Learning
ISBN: 9781305585447
BuyFind

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
Publisher: Cengage Learning
ISBN: 9781305585447

Solutions

Chapter 8.II, Problem 23RE
Textbook Problem

If Costco pays $37.50 for the vacuum cleaner shown here,

a. What is the percent markup based on selling price?

b. If Costco pays $1.50 to the insurance company for each product replacement policy sold, what is the percent markup based on selling price of the vacuum cleaner and policy combination?

c. If 6.000 vacuum cleaners are sold in a season and 40 % are sold with the insurance policy, how many additional "markup dollars." the gross margin, was made by offering the policy?

d. (Optional) As a housewares buyer for Costco, what is your opinion of such insurance policies, considering their effect on the “profit picture" of the department? How can you sell more policies?

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Chapter 8 Solutions

Contemporary Mathematics for Business & Consumers
Ch. 8.I - For the following items, calculate the missing...Ch. 8.I - Item Cost Amount of Markup Selling Price Percent...Ch. 8.I - Amount of Percent...Ch. 8.I - Amount of Percent...Ch. 8.I - Amount of Percent Markup Item Cost Markup Selling...Ch. 8.I - Amount of Percent Markup Item Cost Markup Selling...Ch. 8.I - Solve the following word problems. Round dollars...Ch. 8.I - Solve the following word problems. Round dollars...Ch. 8.I - Solve the following word problems. Round dollars...Ch. 8.I - Solve the following word problems. Round dollars...Ch. 8.I - Solve the following word problems. Round dollars...Ch. 8.I - Solve the following word problems. Round dollars...Ch. 8.I - Solve the following word problems. Round dollars...Ch. 8.I - Solve the following word problems. Round dollars...Ch. 8.I - Solve the following word problems. Round dollars...Ch. 8.I - Solve the following word problems. Round dollars...Ch. 8.I - Solve the following word problems. Round dollars...Ch. 8.I - Solve the following word problems. Round dollars...Ch. 8.I - Solve the following word problems. Round dollars...Ch. 8.I - Solve the following word problems. Round dollars...Ch. 8.I - Solve the following word problems. Round dollars...Ch. 8.II - Deals on Wheels buys bicycles from the distributor...Ch. 8.II - Grand Prix Menswear buys suits for $169 from the...Ch. 8.II - At Video Outlet, a PlayStation 4 game is marked up...Ch. 8.II - For the following items, calculate the missing...Ch. 8.II - For the following items, calculate the missing...Ch. 8.II - For the following items, calculate the missing...Ch. 8.II - For the following items, calculate the missing...Ch. 8.II - For the following items, calculate the missing...Ch. 8.II - For the following items, calculate the missing...Ch. 8.II - For the following items, calculate the missing...Ch. 8.II - For the following items, calculate the missing...Ch. 8.II - For the following items, calculate the missing...Ch. 8.II - For the following items, calculate the missing...Ch. 8.II - For the following items, calculate the missing...Ch. 8.II - For the following items, calculate the missing...Ch. 8.II - Solve the following word problems. Round dollars...Ch. 8.II - Solve the following word problems. Round dollars...Ch. 8.II - Solve the following word problems. Round dollars...Ch. 8.II - Solve the following word problems. Round dollars...Ch. 8.II - Solve the following word problems. Round dollars...Ch. 8.II - Solve the following word problems. Round dollars...Ch. 8.II - Solve the following word problems. Round dollars...Ch. 8.II - Solve the following word problems. Round dollars...Ch. 8.II - Solve the following word problems. Round dollars...Ch. 8.II - Solve the following word problems. Round dollars...Ch. 8.II - 23. If Costco pays $37.50 for the vacuum cleaner...Ch. 8.III - A tennis racquet that originally sold for $75 was...Ch. 8.III - Craftsman’s Village originally sold paneling for...Ch. 8.III - What was the original selling price of a necklace...Ch. 8.III - In September, Tire Depot in Chicago purchased snow...Ch. 8.III - Enchanted Gardens, a chain of flower shops,...Ch. 8.III - For the following items, calculate the missing...Ch. 8.III - For the following items, calculate the missing...Ch. 8.III - For the following items, calculate the missing...Ch. 8.III - For the following items, calculate the missing...Ch. 8.III - For the following items, calculate the missing...Ch. 8.III - For the following items, calculate the missing...Ch. 8.III - For the following items, calculate the missing...Ch. 8.III - For the following items, calculate the missing...Ch. 8.III - For the following items, calculate the missing...Ch. 8.III - For the following items, calculate the missing...Ch. 8.III - Solve the following word problems, rounding...Ch. 8.III - Solve the following word problems, rounding...Ch. 8.III - Solve the following word problems, rounding...Ch. 8.III - Solve the following word problems. Round dollars...Ch. 8.III - Solve the following word problems, rounding...Ch. 8.III - Solve the following word problems. Round dollars...Ch. 8.III - Solve the following word problems, rounding...Ch. 8.III - Solve the following word problems. Round dollars...Ch. 8.III - Solve the following word problems. Round dollars...Ch. 8.III - Solve the following word problems, rounding...Ch. 8.III - Solve the following word problems, rounding...Ch. 8.III - Solve the following word problems. Round dollars...Ch. 8.III - Solve the following word problems. Round dollars...Ch. 8 - The retailing equation states that the selling...Ch. 8 - 2. In business, expenses are separated into two...Ch. 8 - There are two ways of expressing markup as a...Ch. 8 - Write the formula for calculating the selling...Ch. 8 - 5. To calculate cost, we divide the ________ price...Ch. 8 - The percent markup based on selling price is equal...Ch. 8 - 7. When markup is based on selling price,...Ch. 8 - 8. We use the formula for calculating ________ to...Ch. 8 - 9. To convert percent markup based on cost to...Ch. 8 - 10. To convert percent markup based on selling...Ch. 8 - A price reduction from the original selling price...Ch. 8 - 12. Write the formula for calculating the sale...Ch. 8 - 13. In calculating a series of markups and...Ch. 8 - 14. Products that have a certain shelf life and...Ch. 8 - Solve the following word problems. Round dollars...Ch. 8 - Solve the following word problems. Round dollars...Ch. 8 - Solve the following word problems. Round dollars...Ch. 8 - Solve the following word problems. Round dollars...Ch. 8 - Solve the following word problems. Round dollars...Ch. 8 - Solve the following word problems. Round dollars...Ch. 8 - Solve the following word problems. Round dollars...Ch. 8 - Solve the following word problems. Round dollars...Ch. 8 - Solve the following word problems. Round dollars...Ch. 8 - Solve the following word problems. Round dollars...Ch. 8 - Solve the following word problems. Round dollars...Ch. 8 - Solve the following word problems. Round dollars...Ch. 8 - Solve the following word problems. Round dollars...Ch. 8 - Solve the following word problems. Round dollars...Ch. 8 - Solve the following word problems. Round dollars...

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