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C.1 The success of a business depends on many things. For example, you are the senior manager of the ABC Hypermarket Explain Mr. Said, the

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C.1 The success of a business depends on many things. For example, you are the senior manager of the ABC Hypermarket Explain Mr. Said, the new manager how to understand the customers and the competition. In addition also explain control costs and how to price their products and services. Explain Mr. Said about Markup & Margin with the following situations. Required: (a) Situation 1: Calculating OMR amount of markup and percent markup on cost (2.5 Marks) Signature" jeans cost, OMR 1800 Signature jeans selling price OMR 2300 (b) Situation 2. Calculating selling price based on following information. (2.5 Marks) Lamp cost. OMR200 40% markup on selling price (c) Situation 3: Calculating cost based on following information (2.5 Marks) Tennis racket selling price OMR 800 40% markup on cost (d) What is the formula to convert percent markup on selling price to percent markup on cost? How could you explain that a 40% markup on selling price, which is a 66.7% markup on cost, would result in the same OMR markup? (2.5 Marks) (2). As the summer approaches Mr. Samad is in search of good quality air coolers to be replaced in his house. With an intention to buy an air cooler he went to Mars hypermarket. There he found three different companies air coolers at different prices. They were as follows: Item Net Price Trade Discount Amount Panasonic Air cooler OMR 149.99 OMR 15 General Air cooler OMR 189.99 OMR 17 ILG Air cooler OMR 216.50 OMR 30 By seeing the prices and discount amount Mr. Samad was confused to buy which air cooler. You are required to help him in choosing the best air cooler in terms of less price. (a) Determine the discount rate applied for Panasonic Air cooler. (1 Mark) (b) Determine the discount rate applied for General Air cooler. (1 Mark) (c) Determine the discount rate applied for LG Air cooler. (1 Mark) (d) Which air cooler you will suggest Mr. Samad to buy in terms of discount rate (1 Mark)

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