Question
Please show all the formula and the steps in detailed!!! Q1. A well-known local wine shop uses keystone pricing for its line of modular wine
Please show all the formula and the steps in detailed!!!
Q1. A well-known local wine shop uses keystone pricing for its line of modular wine racks.
a. Given this pricing practice, use the cost information here to calculate the retail prices for the following items. Show your calculations:
12-bottle rack, natural finish Per-item cost $22.50
12-bottle rack, mahogany finish Per-item cost $26.25
24-bottle rack, natural finish Per-item cost $36.00
b. What is the markup percentage being used for these wine racks?
c. If these wine racks are sold at the prices you calculated in Part (a), what would be the shops percent gross margin for these items?
Q2. A homeowner has asked a local real estate agent for advice on the price he should set for his house. The real estate agent notes that the only comparable house in the neighborhood that is currently for sale is asking $350,000. Both houses are on a hill that overlooks a beautiful lake, but the owners house is forty feet farther up the hill than the comparable house. The agent estimates that, in this area, customers will pay an additional $10,000 for a house for each ten added feet of elevation associated with the houses location. The owners house has an old, outdated kitchen, but the sellers of the comparable house have just spent $24,000 to remodel their kitchen. What is the selling price that the real estate agent should recommend?
Q3. Calculate the missing values (only those in Boldface).
|
| Clothes Washer | seller | On Campus bottled water | Bottled Water | seller |
| Retail Price | $1,200.00 | Home Depot (A) | Retail Price | $1.65 | Food Service (A) |
| Retail Markup (%) | 20.00% |
| Retail markup (%) |
|
|
| Wholesale price | _____? |
| Wholesale price | $1.16 | Sysco |
| Wholesale Margin (%) | 0.00% |
| Wholesale Margin (%) | 20.00% |
|
| Manufacturer's Price ($) |
| LG (B) | Manufacturer's Price |
| Nestle (B) |
| Manufacturer's Gross Margin ($) |
|
| Manufacturer's Gross Margin |
|
|
| Target Cost of Goods Sold | $672.00 |
| Target Cost of Goods Sold | $0.23 |
|
| Revenue for LG ($) |
| (B) | Revenue for Nestle |
| (B) |
| Revenue for Home Depot ($) |
| (A) | Revenue for Food Service |
| (A) |
| Direct to consumer | Dell Latitude E5430 | seller | Selling through retailer | HP Touchsmart Ultrabook 4-1195ca | seller |
| Retail Price | Retail Price | $1,000.00 | Staples (A) | ||
| Retail Markup (%) | 0.00% | Retail Margin (%) | 10.00% | ||
| Wholesale Distribution price | ______? | Wholesale Distribution price | _____? | ||
| Wholesale Margin (%) | 0.00% | Wholesale Margin (%) | 0.00% | ||
| Manufacturer's Price | $940.00 | Dell (A) | Manufacturer's Price($) | HP (B) | |
| Manufacturer's Gross Margin ($) | Manufacturer's Gross Margin | 30.00% | |||
| Target Cost of Goods Sold | $752.00 | Target Cost of Goods Sold | $630.00 | ||
| Revenue for Dell | (A) | Revenue for HP | (B) | ||
| Revenue for Staples | (A) |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Money Banking And Financial Markets
Authors: Stephen G. Cecchetti
1st Edition
0072452692, 9780072452693
