Which product option is best for the Pitch Fly firm. They buy pitch kettles for
ID: 469991 • Letter: W
Question
Which product option is best for the Pitch Fly firm. They buy pitch kettles for $19.00 from the SNG firm but can sell them for $25.00 with a 24% markup. However, if they buy them from Joggy Sands they can sell them for $35.00 but must pay 31.00 per pitch kettle with only a 11% markup. However, they can sell 400 hundred of the Joggy Sands pitch kettles which is twice as many of the SNG pitch kettles. Which product should the Pitch Fly firm purchase and why? Show your calculation in answering the question
Explanation / Answer
Option 1
Cost price: 19.00
Selling price: 25.00
Profit per piece: 6.00
Total profit: 200 x 6 = 1200.00
Option 2
Cost price: 31
Selling price: 35.00
Profit per piece: 4.00
Total profit: 400 x 4 = 1600.00
Option 2 is better
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.