Please show all the formula and the steps in detailed!!! Q1. A well-known local
ID: 2819185 • Letter: P
Question
Please show all the formula and the steps in detailed!!!
Q1. A well-known local wine shop uses keystone pricing for its line of modular wine racks.
a. Given this pricing practice, use the cost information here to calculate the retail prices for the following items. Show your calculations:
12-bottle rack, natural finish Per-item cost $22.50
12-bottle rack, mahogany finish Per-item cost $26.25
24-bottle rack, natural finish Per-item cost $36.00
b. What is the markup percentage being used for these wine racks?
c. If these wine racks are sold at the prices you calculated in Part (a), what would be the shop’s percent gross margin for these items?
Q2. A homeowner has asked a local real estate agent for advice on the price he should set for his house. The real estate agent notes that the only comparable house in the neighborhood that is currently for sale is asking $350,000. Both houses are on a hill that overlooks a beautiful lake, but the owner’s house is forty feet farther up the hill than the comparable house. The agent estimates that, in this area, customers will pay an additional $10,000 for a house for each ten added feet of elevation associated with the house’s location. The owner’s house has an old, outdated kitchen, but the sellers of the comparable house have just spent $24,000 to remodel their kitchen. What is the selling price that the real estate agent should recommend?
Q3. Calculate the missing values (only those in Boldface).
Clothes Washer
seller
On Campus bottled water
Bottled Water
seller
Retail Price
$1,200.00
Home Depot (A)
Retail Price
$1.65
Food Service (A)
Retail Markup (%)
20.00%
Retail markup (%)
Wholesale price
_____?
Wholesale price
$1.16
Sysco
Wholesale Margin (%)
0.00%
Wholesale Margin (%)
20.00%
Manufacturer's Price ($)
LG (B)
Manufacturer's Price
Nestle (B)
Manufacturer's Gross Margin ($)
Manufacturer's Gross Margin
Target Cost of Goods Sold
$672.00
Target Cost of Goods Sold
$0.23
Revenue for LG ($)
(B)
Revenue for Nestle
(B)
Revenue for Home Depot ($)
(A)
Revenue for Food Service
(A)
Direct to consumer
Dell Latitude E5430
seller
Selling through retailer
HP Touchsmart Ultrabook 4-1195ca
seller
Retail Price
Retail Price
$1,000.00
Staples (A)
Retail Markup (%)
0.00%
Retail Margin (%)
10.00%
Wholesale Distribution price
Wholesale Distribution price
Wholesale Margin (%)
0.00%
Wholesale Margin (%)
0.00%
Manufacturer's Price
$940.00
Dell (A)
Manufacturer's Price($)
HP (B)
Manufacturer's Gross Margin ($)
Manufacturer's Gross Margin
30.00%
Target Cost of Goods Sold
$752.00
Target Cost of Goods Sold
$630.00
Revenue for Dell
(A)
Revenue for HP
(B)
Revenue for Staples
(A)
Clothes Washer
seller
On Campus bottled water
Bottled Water
seller
Retail Price
$1,200.00
Home Depot (A)
Retail Price
$1.65
Food Service (A)
Retail Markup (%)
20.00%
Retail markup (%)
Wholesale price
_____?
Wholesale price
$1.16
Sysco
Wholesale Margin (%)
0.00%
Wholesale Margin (%)
20.00%
Manufacturer's Price ($)
LG (B)
Manufacturer's Price
Nestle (B)
Manufacturer's Gross Margin ($)
Manufacturer's Gross Margin
Target Cost of Goods Sold
$672.00
Target Cost of Goods Sold
$0.23
Revenue for LG ($)
(B)
Revenue for Nestle
(B)
Revenue for Home Depot ($)
(A)
Revenue for Food Service
(A)
Explanation / Answer
Answer)Keystone of pricing the markup price is decided as Double price to the cost or whole sale price .
Here,
Mark Up price(per unit)
12-bottle rack, natural finish Per-item cost $22.50 22.50*2= $45
12-bottle rack, mahogany finish Per-item cost $26.25 26.25*2=$52.50
24-bottle rack, natural finish Per-item cost $36.00 36*2 =$72
Mark up price for whole rack = 12*45+12*52.50 +24*72 =$ 2898
a) gross markup margin = Markup price - cost price = $1449
Markup percentage = $1449/$2898 = 0.5=50%
b) Profit = Markup price - cost price = $1449
Profit % = Profit/ cost price *100 = $1449/$1449 *100 = 100%.
Answer 2)
Price of property = neighborhood property + Premium of Height - Cost of modern kitchen
= $350,000 + 40/10* $10000 - $24000
= $3 66,000
Answer 3) Wholesale price * (1+markup) = Selling price.
seller On Campus bottled water Bottled Water seller Clothes Washer Retail Price $1,200.00 Home Depot (A) Retail Price $1.65 Food Service (A) Retail Markup (%) 20.00% Retail markup (%) _____? 42.24% Wholesale price _____? $1000.00 Wholesale price $1.16 Sysco Wholesale Margin (%) 0.00% Wholesale Margin (%) 20.00% Manufacturer's Price ($) $1,000 LG (B) Manufacturer's Price $0.97 Nestle (B) Manufacturer's Gross Margin ($) $328.00 Manufacturer's Gross Margin $0.74 Target Cost of Goods Sold $672.00 Target Cost of Goods Sold $0.23 Revenue for LG ($) $1,000 (B) Revenue for Nestle $0.97 (B) Revenue for Home Depot ($) $1,200.00 (A) Revenue for Food Service $1.65 (A) Direct to consumer Dell Latitude E5430 seller Selling through retailer HP Touchsmart Ultrabook 4-1195ca seller Retail Price $940 Retail Price $1,000.00 Staples (A) Retail Markup (%) 0.00% Retail Margin (%) 10.00% Wholesale Distribution price ______? $940 Wholesale Distribution price _____? $909.09 Wholesale Margin (%) 0.00% Wholesale Margin (%) 0.00% Manufacturer's Price $940.00 Dell (A) Manufacturer's Price($) $819.00 HP (B) Manufacturer's Gross Margin ($) $188.00 Manufacturer's Gross Margin 30.00% Target Cost of Goods Sold $752.00 Target Cost of Goods Sold $630.00 Revenue for Dell $940.00 (A) Revenue for HP $819.00 (B) Revenue for Staples $1,000.00 (A)Related Questions
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