Many luxury sheets cost less than $200 to make but sell for more than $500 in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Many luxury sheets cost less than $200 to make but sell for more than $500 in retail stores. Some cost even more - consumers pay almost $3,000 for Frett'e "Tangeri Pizzo" king-size luxury linens. The creators of a new brand of luxury linens, called Boll & Branch, have entered this market and are determining the price at which to sell their sheets directly to consumers online. They want to price their sheets lower than most brands but still want to earn an adequate margin on sales. The sheets come in a luxurious box that can be reused to store lingerie, jewelry, or other keepsakes. The Boll & Branch brand touts fair trade practices when sourcing its high-grade long-staple organic cotton from India. Given the cost per king-size sheet set below, and assuming the manufacturer has total fixed costs of $510,000 and estimates first year sales will be 30,000 sets, determine the price to consumers if the company desires a 55 percent margin on sales. Click the icon to view the cost information for a king-size set. The variable cost is $ (Round to the nearest dollar.) Many luxury sheets cost less than $200 to make but sell for more than $500 in retail stores. Some cost even more - consumers pay almost $3,000 for Frett'e "Tangeri Pizzo" king-size luxury linens. The creators of a new brand of luxury linens, called Boll & Branch, have entered this market. They want to price their sheets lower than most brands but still want to earn an adequate margin on sales. The sheets come in a luxurious box that can be reused to store lingerie, jewelry, or other keepsakes. The Boll & Branch brand touts fair trade practices when sourcing its high-grade long-staple organic cotton from India. The company calculated the price to consumers to be $460. If the company decides to sell through retailers instead of directly to consumers online, to maintain the consumer price at $460, at what price must it sell the product to a wholesaler who then sells it to retailers? Assume wholesalers desire a 12 percent margin and retailers get a 25 percent margin, both based on their respective selling prices. The retail margin is $ (Round to the nearest cent.) Many luxury sheets cost less than $200 to make but sell for more than $500 in retail stores. Some cost even more - consumers pay almost $3,000 for Frett'e "Tangeri Pizzo" king-size luxury linens. The creators of a new brand of luxury linens, called Boll & Branch, have entered this market and are determining the price at which to sell their sheets directly to consumers online. They want to price their sheets lower than most brands but still want to earn an adequate margin on sales. The sheets come in a luxurious box that can be reused to store lingerie, jewelry, or other keepsakes. The Boll & Branch brand touts fair trade practices when sourcing its high-grade long-staple organic cotton from India. Given the cost per king-size sheet set below, and assuming the manufacturer has total fixed costs of $510,000 and estimates first year sales will be 30,000 sets, determine the price to consumers if the company desires a 55 percent margin on sales. Click the icon to view the cost information for a king-size set. The variable cost is $ (Round to the nearest dollar.) Many luxury sheets cost less than $200 to make but sell for more than $500 in retail stores. Some cost even more - consumers pay almost $3,000 for Frett'e "Tangeri Pizzo" king-size luxury linens. The creators of a new brand of luxury linens, called Boll & Branch, have entered this market. They want to price their sheets lower than most brands but still want to earn an adequate margin on sales. The sheets come in a luxurious box that can be reused to store lingerie, jewelry, or other keepsakes. The Boll & Branch brand touts fair trade practices when sourcing its high-grade long-staple organic cotton from India. The company calculated the price to consumers to be $460. If the company decides to sell through retailers instead of directly to consumers online, to maintain the consumer price at $460, at what price must it sell the product to a wholesaler who then sells it to retailers? Assume wholesalers desire a 12 percent margin and retailers get a 25 percent margin, both based on their respective selling prices. The retail margin is $ (Round to the nearest cent.)
Expert Answer:
Answer rating: 100% (QA)
To determine the price to consumers we need to calculate the total cost per kingsize sheet set and t... View the full answer
Related Book For
Accounting for Decision Making and Control
ISBN: 978-0078025747
8th edition
Authors: Jerold Zimmerman
Posted Date:
Students also viewed these abstract writing questions
-
Many luxury sheets cost less than $200 to make but sell for more than $500 in retail stores. Some cost even more-consumers pay almost $3,000 for Frett'e "TangeriPizzo" king-size luxury linens. The...
-
What is a primary way to determine causality between two variables?
-
Many luxury sheets cost less than $200 to make but sell for more than $500 in retail stores. Some cost even moreconsumers pay almost $3,000 for Frette Tangeri Pizzo king-size luxury linens. The...
-
An investment project provides cash inflows of $710 per year for 9 years. Required: What is the project payback period if the initial cost is 3,550?
-
A uniform rectangular coil of total mass 210 g and dimensions 0.500 m X 1.00 m is oriented perpendicular to a uniform 3.00-T magnetic field (Fig). A current of 2.00 A is suddenly started in the coil....
-
A separately-excited dc motor is mechanically coupled to a three-phase, four-pole, 30-kVA, 460-V, cylindrical-pole synchronous generator. The dc motor is connected to a constant 230-V dc supply, and...
-
What discovery devices you may use to obtain facts?
-
Pam Corporation holds 70 percent ownership of Northern Enterprises. On December 31, 20X6, Northern paid Pam $40,000 for a truck that Pam had purchased for $45,000 on January 1, 20X2. The truck was...
-
Mark Richards works as a bouncer in a nightclub in Markham,Ontario. To supplement his income, he took the habit to sell illegaldrugs to some of the customers, while on duty; One night, during oneof...
-
Which of the following is a positive reason for learning chemistry? (a) Chemistry is relevant to daily life (b) Chemistry offers career opportunities (c) Chemistry studies interesting topics (d)...
-
A. The capital structure of MAID Company is as follows: Long-term debt Common stock, RM1 par RM 400 million RM 50 million Contributed capital in excess of par Retained earnings RM 250 million Total...
-
The following diagrams represent the order of read/write operations of two threads sharing a common variable. Each thread first reads the value of the variable from memory and then writes a new value...
-
Fill in the blank with the functional interface from java.util.function that allows the code to compile and print 3 at runtime. _____________ transformer = x -> x; A. Function B. UnaryOperator C....
-
What is the expected result of calling deleteTree() on a directory? Assume the directory exists and is able to be modified. A. It will delete the directory itself only. B. It will delete the...
-
Fill in the blanks: ______________ is a special case of ______________, in which two or more active threads try to acquire the same set of locks and are repeatedly unsuccessful. A. Deadlock, livelock...
-
What is the output of the following code snippet? Assume that the current directory is the root path /. A. ../found/red.zip and ../../locks B. /found/red.zip and /found/red.zip/./locks C....
-
The algorithm first inserts five nodes into a tree structure and then traverses the tree. Using the Jeliot environment, load, compile and execute this java algorithm to understand its operation....
-
A superior criticized a sales manager for selling high-revenue, low-profit items instead of lower-revenue but higher-profit items. The sales manager responded, My income is based on commissions that...
-
Golf World is a 1,000- room luxury resort with swimming pools, tennis courts, three golf courses, and many other resort amenities. The head golf course superintendent, Sandy Green, is responsible for...
-
Toby Manufacturing produces three different products in the same plant and uses a job order costing system to estimate product costs. A flexible budget is used to forecast overhead costs. Total...
-
Media Designs is a marketing firm that designs and prints customized marketing brochures. The design department designs the brochure and the printing department prints and binds it. Each department...
-
What forms of business organization are permitted under Rule 505-Form of Practice and Firm Name?
-
There currently are thirteen Rules of Conduct. Listed below are circumstances pertaining to some of these rules: 1. A member shall exercise due professional care in the performance of an engagement....
-
a. What aspects of a company's financial statements are covered in the first three reporting standards? b. What is the objective of the fourth standard of reporting?
Study smarter with the SolutionInn App