I need help with number 2 and on.

Lesson 11 Assignment Cost-Oriented Price Setting This is an individual assignment. Please answer the following questions. Retailers and wholesalers use traditional markups that they feel will yield a reasonable rate of profit. Answer the following set of problems. 1. The usual retail price of an item is $100. The manufacturer's cost to produce the item is $40. Retailers take a 50 percent markup and wholesalers take a 10 percent markup (markup is calculated on selling price, unless otherwise is indicated). a. What is the retailer's markup in dollars? 50% * 100= $50.00 b. What is the wholesale price? $100.00 - $50 = $50.00 c. What is the manufacturer's price? $50 - (10% * $50) = $45.00 d. What is the manufacturer's markup percentage? ($45 - $40) / $45 = 11.11% 2. The XYZ Manufacturing Company is trying to set its price on a product that will sell at retail for $80. a. For retailers to earn a markup of 25 percent, what should the wholesale price be? ________________________ b. For the wholesalers to earn a markup of 10 percent, what should the manufacturer's price be? _________________________ 3. Complete the following table by filling in the blanks. Total cost Total fixed cost Total variable cost Average cost Average fixed cost Average variable cost 0 ______ $120 _____ n/a n/a n/a 1 ______ ______ ______ ______ ______ $70 Quantity Produced 2 ______ _______ $140 ______ ______ ______ 3 ______ ______ ______ $110 ______ ______ 4 $400 ______ ______ ______ ______ ______ 4. Suppose you were considering going into the car-wash business and investing in a new kind of car-washing unit which is more mechanized than the usual onesbut also has higher fixed costs. Calculate the break-even point in dollars and units if the usual price of $4 per car were charged. The variable cost per car is estimated at $2. The total fixed cost per year (including depreciation, interest, taxes, fixed labor costs, and other fixed costs) is estimated at $320,000. a. Break-even Point in $ __________________________ b. Break-even Point in units________________________ c. Calculate the break-even points (in $ and units) if the retail price of car wash drops to $3.50 per car due to competition in the future. d. Break-even point in $ ___________________________ e. Break-even point in units ________________________ f. Should you go into the car-wash business in any of the above situations? Explain. _________________________________________________________________ _________________________________________________________________ _________________________________________________________________