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CAN I GET SOME HELP ON THIS PROBLEM, PLEASE? Sheridan Inc. has been producing basketballs, volleyballs, soccer balls, and footballs for many years. Its manager,
CAN I GET SOME HELP ON THIS PROBLEM, PLEASE?
Sheridan Inc. has been producing basketballs, volleyballs, soccer balls, and footballs for many years. Its manager, Jake, just came up with the idea to sell products in a bundle to provide more options for buyers. Jake's suggestion is to sell a bundle of balls (one of each of the four types listed, above) for $60. This represents a savings to the consumer of 15% off regular, individual prices for the items. The company has been operating within its target cost for all of these products, which have a combined total of $37 per bundle. The proposal includes a target sales volume of 10,000 bundles. (a) If Sheridan requires an ROI of 20% on its invested assets, what amount of invested assets must the company currently have? Asset base In evaluating the selling prices for products at her part-time retail job. Ruth asked her supervisor how the company sets its prices. Her supervisor told her it applies a steady markup percentage on each product's cost. She selected a lightweight jacket off the rack and noted its selling price of $60. Her supervisor looked at the selling price and then told Ruth the company paid $48 for the item. What markup percentage on cost is the company using to set its selling price? If the company instead used a 24% markup percentage on cost, what would the selling price have been? (Round selling price to 2 decimal places, e.g. 15.25.) Markup percentage based on cost % Selling price $Step by Step Solution
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