DON'T FORGET TO SHOW YOUR WORK! The American Marketing Association needs a new fundraiser, so they decide to sell Kent State University T-shirts and hoodies at the business school to raise money. They find a supplier that will sell them the T-shirts for $5.00 each and the hoodies for $10.00 each. AMA can now tack a markup onto those prices when they sell the shirts to students and keep the profits for the organization. 1. Suppose AMA wants to achieve a 45% margin on T-shirts. What price should they charge students for a T-shirt? 2. If they want to achieve the same 45% margin on hoodies, what price should they charge students for a sweatshirt? 3. Suppose AMA decides to avoid making change and charge an even $10.00 for their T-shirts. What will their markup be? What percent margin is this? 4. In keeping with the round number/no change theory, AMA decides to sell its hoodies for $15.00. What will their markup be? What percent margin is this? s. At the end of the first week, sales are high. AMA is excited by their success, and they plan to move from the business school to the Kent Student Center to expand their business. They expect to sell at least twice as many shirts next week, so they will be increasing their order from their supplier. They think that the supplier may be willing to give them a better deal on the price since their order will be larger. AMA's goal is to get a 60% margin on T-shirts and a 40% margin on hoodies. What will they be asking their supplier to lower the wholesale prices of T-shirts and hoodies to? Suppose it costs the supplier $2.00 to buy and print each T- shirt and $5.00 to buy and print each hoodie. What is the supplier's contribution margin on T-shirts and hoodies now? If the supplier accepts AMA's request to lower the wholesale price, what will their contribution margin on T-shirts and hoodies be? If you were the supplier, would you accept the request to lower your wholesale price? Write a paragraph explaining your decision.