Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

20) You make unique scarfs that you sell for $5.00 to specialty retailers, who sell them for $9.00. A potentially good customer has offered to

image text in transcribed
20) You make unique scarfs that you sell for $5.00 to specialty retailers, who sell them for $9.00. A potentially good customer has offered to sell you scarfs but only under a consignment sale agreement. In this case, you plan to raise your price to $5.50 to cover the financing costs of the extra inventory. The new customer plans to sell the scarfs for $8.75. Please calculate: a. Retail % margin on sales to specialty retailers: b. Retail % margin on consignment sales: c. You profit margin % if your costs are $3.00 and your selling price is $5.00: 21) In 2-3 sentences, explain the potential advantages and disadvantages of selling the scarfs on consignment. 22) You own a small restaurant and you are evaluating your menu offerings to decide which items to continue to offer or to introduce. In 2-3 sentences, please explain what factors you would want to use in making that decision, including the relevant financial information you would want to know

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Beginner S Guide To Day Trading How To Trade Penny Stocks

Authors: Benjamin Tyce

1st Edition

1681270528, 978-1681270524

More Books

Students also viewed these Finance questions