price setting: wire solution

manufacturing cost for shoe rack:

black: $2.80

chrome: $3.60

selling retail in the $9.95-$19.95 range

administrative overhead cost: $95,000 per year

sales value per year $3.6 million

Pricing setting Wire Solutions case in text Manufacturing cost $3.60 chrome shoe rack $2.80 black shoe rack Selling retail in the $9.95-$19.95 range Administrative overhead $95,000 per yearl Sales value per year $3.6 million (show all your work) 1. If wire solution took a 30 % markup on the manufacturing costs for the black shoe rack and a 35% markup on manufacturing cost for the chrome shoe rack what would the selling prices be for each? 2. Given the selling prices shown above. In this scenario, Wal-Mart elected to purchase the shoe racks and they took a 40 % markup on each shoe rack what would the final customers (Wal-Mart consumers) pay for each shoe rack? 3. Since they are just starting the consumer division, Wire Solutions may decide to focus on just the chrome shoe rack because it appears to be a better quality product Let's assume a variable cost of $2.20 per chrome rack, and taking the current 359% markup on manufacturing costs to calculate selling price outlined in question # 1, how many chrome shoe racks would they need to sell to break even? 4. If wire solution sold directly to retailer and they wanted the chrome shoe rack to sell for $9.99 in retail stores, what should they sell it to a retailer for assuming the retailers will take 45 % markup? Calculate wire Solution markup percentage based this selling price