Pricing Analysis

Acmes Marketing team has established a MSRP (manufacturers suggested retail price) for each gadget based on the feedback of consumers and tech journalists that were selected to review the prototype gadgets. The MSRP has been set as $449, $499, and $425 for Gadgets A, B and C respectively. Acmes sales team wishes to establish a net price (to retailers) that will allow retailers a series of markdowns for the gadget, first by 15% during regular sale periods (to occur up to 3 times a year), with room for a second discount of 10% during special sale periods (Black Friday and Boxing Day), while still allowing the retailer a mark-up of at least 20% over the net price. Find the maximum net price for each gadget.

Professor comments: "Heres how you want to approach the question: First determine, ask (and answer) what is the sale price under regular sale periods? Next, ask (and answer) what is the sale price under special sale periods? Finally, use the relevant information (it might not all be needed) to determine what the net price should be to allow the retailer a markup of 20%."

Any help is much appreciated!