If a home goods retailer pays $33.50 for a vacuum answer the following questions. (Round dollars to the nearest cent and percents to the nearest tenth of a percent.)

The vacuum cleaner sells for $89.99 and the 1-yr Replacement Policy is $7.99

(a) What is the percent markup based on selling price?

(b) If the retailer pays $1.60 to the insurance company for each product replacement policy sold, what is the percent markup based on selling price of the vacuum cleaner and policy combination?

(c) If 6,000 vacuum cleaners are sold in a season and 40% are sold with the insurance policy, how many additional "markup dollars," the gross margin, were made by offering the policy?

(d) As a housewares buyer for the retailer, what is your opinion of such insurance policies, considering their effect on the "profit picture" of the department? How can you sell more policies?