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Problem 5 - 6 A Markups LO 5 Leah Wells, a yoga instructor, started a company that sells athletic yoga clothing. You are Leah s
Problem A Markups LO
Leah Wells, a yoga instructor, started a company that sells athletic yoga clothing. You are Leahs marketing manager. Do not round intermediate calculations and round your final answers to decimal places.
a After assessing the competitors, you determine that Leah needs to price her products with a markup percentage of The cost of her tank tops is $ and her pullovers is $ Determine the selling price for each of Leahs clothing items.
b Leah is ready to launch her yoga pants. You have determined that she should set her price below her competitors price of $ Leahs cost to produce yoga pants is $ per unit. Determine the markup percentage on Leahs yoga pants.
c Calculate the gross profit margin for tank tops, pullovers, and yoga pants.
d After a year, you determine that Leah should set a standard target margin percentage of on all products. Determine the new prices for tank tops, pullovers, and yoga pants.
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