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Optimal Markup: Ralph Kramden is managing partner of Kramden & Associates, Inc.,

ID: 1234828 • Letter: O

Question

Optimal Markup: Ralph Kramden is managing partner of Kramden & Associates, Inc., a New York-based management consulting firm. Kramden has asked you to complete an analysis of profit margins for Ed Norton, Inc., a client firm. Unfortunately, your predecessor on this project was abruptly transferred, leaving only sketchy information on the clients' pricing practices. A. Use the available data to complete the following table:

Price

Marginal Cost

Markup on Cost

Markup on Price

$ 1

$ 0.50

100.0%

50.0%

2

1.60

--

--

5

--

400.0

--

10

--

--

25.0

--

15.00

66.7

--

Price

Marginal Cost

Markup on Cost

Markup on Price

$ 1

$ 0.50

100.0%

50.0%

2

1.60

--

--

5

--

400.0

--

10

--

--

25.0

--

15.00

66.7

--

Explanation / Answer

I think the data provided is insufficient to the solve the problem

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