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C. MARKUP AND MARKDOWN ANALYSIS 1. Yvonne Belanger, owner of Yvonne's European Deli, has decided that she wants to add a new item to the

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C. MARKUP AND MARKDOWN ANALYSIS 1. Yvonne Belanger, owner of Yvonne's European Deli, has decided that she wants to add a new item to the current selection of baked goods she sells in her upscale deli. Currently, she sells cookies and brownies for $2 each, and muffins for $3 each. She makes a standard 30% margin on all sales. Yvonne wants to buy homemade apple, cherry, and lemon pies from a local supplier and sell them for $10 each. If she insists on making a 30% margin on sales, what's the highest price she can pay for these pies and still achieve her target profit margin? y she does make exactly 30% margin on sales, what markup on cost does this Tepresent? e. If Yvonne wanted to have an introductory promotional sale at her deli, but still wanted to make a markup of 10% on cost, what would be her selling price? d. At this new selling price, what would be her margin on sales? 2. Stephen O'Connor has just graduated from a post-secondary institution in British Columbia and is about to move to Belleville, Ontario. To make some extra cash, Stephen has decided to bring along a truck full of canned tuna that he bought from a local B.C. cannery. He paid $0.50 per can, based on purchasing an entire truck load of product. He now hopes to sell these cans of tuna through grocery wholesal- ers around the Toronto area. According to his old schoolmate Ted Phillips, wholesalers generally expect to make 15% markup on their cost, and retailers won't generally sell items like this unless they make 40% margin on their selling price. Stephen thinks he should make $0.35 profit on each can of tuna. What is Stephen's markup on his cost? What is Stephen's margin on his selling price? What price will the consumer have to pay in order for all channel members to achieve their desired markups/margins? 3. Fashion Forward operates three retail locations across Canada: in Halifax, Toronto and Vancouver. It recently purchased a limited edition collection of 300 designe dresses and sent 100 to each city. The dresses were all suggested to sell for S120

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