Consider this conversation between two work colleagues: DM: $4 DL: 4 MOH: 6 Selling expenses: 2 Administrative expenses:5 If Gary determines that he needs to use a 30% markup on full cost to make this effort "worth it" for him, how much must he charge per container? Selling price: 27.30$ Gary realizes that with some time and production experience, he can reduce his DM and MOH costs by 30% each, but that will take at least a year to achieve. If he uses the same markup percentage as before, how much would the new selling price be in one year's time? If instead, Gary keeps the selling price the same as determined in part (a) but also realizes these cost savings, what markup percentage would he be earning? (Round selling price to 2 decimal places, e.g. 15.25 and markup percentage to O decimal places, e.g. 15%.) : Selling price: 23.40, Markup percentage: 52% Question: After some additional research, Gary believes he'll be able to keep his costs down if he produces this type of product in multiple sizes to keep his equipment operating at full capacity, while providing the market place with several size options for these incredible containers. Assume that his estimated costs for a 9x9 container and a 46 container are $15 and $11, respectively. What sening price would he charge for each of these containers, given the same 30% desired markup? (Round answers to 2 decimal places, e.g. 15.25.) Selling price: 9x 9 Container: ...$ 4 x 6 Container:...$

Debra: Hey Gary, what did you say you needed these other selling prices for again? Gary: I'm trying to figure out if my potential customers will be willing to pay what I want to charge for my clever upgrade to plastic storage containers. Debra: Oh, wow, that sounds super exciting; thanks for including me in this analysis. Gary: You just wait, Debra. I'm going to make a dent in this market, and then we'll see who retires at age 45! Debra gathered the following selling price information about other plastic storage containers on the market. Competitor 9x 13 Plastic Containers with Lid $12, lid fits tightly but is not spill-proof $15, lid is spill-proof but snaps on loudly $10, lid just rests on top so is not tight-fitting However, without access to competitors' internal records, she could not determine their costs. Meanwhile, Gary made note of his production costs and secretly smiled to himself as he thought about what a great idea he had. He wants to make plastic storage containers that have a locking lid. More than that, the lid locks quietly, so no one knows you're sneaking a treat from the container (yes, Gary got busted stealing Debra's famous chocolate cookies, and he vowed to fix this problem permanently). Here's his estimated costs to produce and sell one 9 x 13 plastic container with quiet, spill-proof lid