Cazenovia College Effective Pricing Strategies Project

Cazenovia College Effective Pricing Strategies Project

1. Sanborn, a manufacturer of electric roof vents, realizes a cost of $55 for every unit it produces. Its total fixed costs equal $2 million. If the company manufactures 500,000 units compute the following (2 pts): a. Unit cost b. ROI price if the company desires a 25% return on an investment of $1 million 2. An interior decorator purchases items to sell in her store.

She purchases a lamp for $125 and sells it for $225. Determine: a. Her Markup. (0.5 pts) b. Her markup on cost percentage? (0.5 pts) c. Her markup on price percentage? (0.5 pts) d. Her gross margin percentage? (0.5 pts) 3. If the interior decorator applies a target markup on cost of 50%, what will the retail price be? (4 pts) make

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