HANDBAGS Exam3, Part 3 ---> Marketing math problem re CLASSY CARRIER Unbeknown to many of his professional colleagues, Prof Murray has a side-hustle that makes an item sold in up-scale specialty gift shops called CLASSY CARRIER thus, widely promoted in select media! Retailers expect to realize a 25 percent markup HANDBAGS, which retail for $320 apiece. The item is popular among celebrities and is, on selling price [SP] and wholesalers that handle these kind of gift items won't handle items like this without realizing at least a 20 percent markup on SP for themselves as Murray has the following costs associated with producing CLASSY CARRIER HANDBAGS as shown below on a per item basis. He plans to make about 1,000 of these items; in the marketplace where CLASSY CARRIER HANDBAGS compete, national retail sales are expected to be about 5,000 a year. General marketing and advertising expenses Tradeshows, promotional events, on-line website, SEO costs, Shipping costs associate with each CLASSY CARRIER HANDBAG Cost of the soft leather and stitching materials that make it distinctive What it costs to pay crafts-people to make on a per-item basis Cost of buying a distinctive gift-box that holds each bag for retail display Maintain the small factory and cover all financing and up-keep expenses Pay for the cost of the central offices of the company and staff to run it Commission to sales brokers who help promote and sell the item to retailers $10 $10 $10 $10 $10 $10 $10 $10 $10 Indicate the correct response from each of the alternatives shown for the items that follow: [46] What is the variable cost for Murray's people in making, marketing shipping it's line of bags? [A] $40 [B] $50 [C] $60 [D] $90 E] Nothing very close to any value in A, B, C, or D. What is the total FIXED COST Murray has to defray in terms of rhead, operations, administration, and marketing? [A] $40