Starbucks has developed a new drink and compiled the following production information. Production Cost Promotion Cost Sales
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Question:
Starbucks has developed a new drink and compiled the following production information.
| Production Cost | Promotion Cost | Sales Revenue | |
| Year 1 | 32,000 | ----- | ------ |
| Year 2 | 32,000 | 64,000 | 64,000 |
| Year 3 | 32,000 | 96,000 | 256,000 |
| Year 4 | 32,000 | 32,000 | 128,000 |
| Year 5 | 32,000 | --- | 32,000 |
Should the product be marketed if the company requires a return of 16%?
Using a markup of 35% of cost, a store priced a clock at $8.91.
a. What was the cost of the clock?
b. What is the markup as a percent of selling price?
Please use TI BA II calculator features (N, I/Y, PV, PMT, FV, AMORT) to solve questions (if possible)
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