Question
1. John Smith, LTD is trying to set a price for a new product that costs him $30 to make. 1. If he sets the
1. John Smith, LTD is trying to set a price for a new product that costs him $30 to make.
1. If he sets the sales price at $75, what is the markup percentage?
2. If he uses a markup percentage of 175%, what sales price will he set?
3. If market research indicates consumers will pay a maximum sales price of $66, what must John reduce the cost to if he wants to maintain the 175% markup?
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Fundamental Managerial Accounting Concepts
Authors: Edmonds, Tsay, olds
6th Edition
71220720, 78110890, 9780071220729, 978-0078110894
