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. Sonie 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 opline. They want to price their shcets 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 information below, answer the following questions. Cost/King-size Set $28.00 $12.00 $10.00 $ 3.00 $16.00 Raw Cotton Spinning/Weaving/Dyeing Cut/Sew/Finishing Material Transportation Factory Fee Inspection and Import Fees Ocean Freight/Insurance Warehousing Packaging Promotion $14.00 $ 5.00 $ 8.00 $15.00 $30.00 $15.00 Customer Shipping Given the cost per king-size sheet set above, and assuming the manufacturer has total fixed Costs of $500,000 and estimates first year sales will be 50,000 sets, determine the price to consumers if the company desires a 40 percent margin on Sales. Many luxury sheets cost less than $200 to make but sell for more than $500 in retail stores. Sonie 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 opline. They want to price their shcets 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 information below, answer the following questions. Cost/King-size Set $28.00 $12.00 $10.00 $ 3.00 $16.00 Raw Cotton Spinning/Weaving/Dyeing Cut/Sew/Finishing Material Transportation Factory Fee Inspection and Import Fees Ocean Freight/Insurance Warehousing Packaging Promotion $14.00 $ 5.00 $ 8.00 $15.00 $30.00 $15.00 Customer Shipping Given the cost per king-size sheet set above, and assuming the manufacturer has total fixed Costs of $500,000 and estimates first year sales will be 50,000 sets, determine the price to consumers if the company desires a 40 percent margin on Sales.
Expert Answer:
Answer rating: 100% (QA)
a For the start certain quantities that will be later tabulated ... View the full answer
Related Book For
Posted Date:
Students also viewed these marketing 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...
-
A retailer purchases 100 of a new brand of DVD player, of which 2 are defective. The purchase agreement says that if he tests 5 chosen at random and finds 1 or more defective, he receives all the DVD...
-
Discuss how the creation of a new brand identity might help an organisation to steer its way through difficult as well as easy times. Explain the relationship between identity, communications and...
-
What are the Key Success factors in the Daycare industry? explain
-
Explain why it is important for the cell cycle to be highly regulated.
-
A consumer is stocking up on sodas and sports drinks at the dollar store. As you might expect as a dollar store, each bottles of each drink costs $1. He has a $10 bill to spend. Based on Table EP-2...
-
CMS is a claims processing company in Mobile, Alabama. Chastity Jones, a black woman, completed an online employment application for a customer service position with CMS. Jones interviewed with a...
-
Shannon Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials (8 pounds at $2.50 per pound) ...... $20 Direct labor (3...
-
How did you apply active listening to seek information and confirm your understating as you interacted with a child or group of children?
-
Consider the following parlor game to be played between two players. Each player begins with three chips: one red, one white, and one blue. Each chip can be used only once. To begin, each player...
-
Carol has a bail bondsman post a bail of $10,000 for her trial that will take place in 4 months. The bondsman charges a $80 fee plus of the bail. What interest rate is being charged by the bail...
-
Continuous Ventilator (respirator) is a device intended to mechanically control or assist patient breathing by delivering a predetermined percentage of oxygen in the breathing gas. Adult, pediatric,...
-
New manufacturing plant decision, Explain why locating a plant solely on the basis of low labor costs may be the wrong approach?...
-
Consider the difference between reviewing the literature and creating a literature review, including how the process of synthesizing your understanding can impact both the literature review and your...
-
1. Identify at least 3 personal goals using the SMART guidelines. Financial goals should be specific , measurable, have a definite timeframe, relevant, and imply the action to be taken. Your goals...
-
b. Identify at least five responsibilities of employees in health, safety and security management practices.
-
Create a function called randomBetween(x, y) that will return a random number between two numbers that are passed as parameters, x and y. Using the Math library, round the number. Add a bonus to the...
-
Conduct a VRIO analysis by ranking Husson University (in Maine) business school in terms of the following six dimensions relative to the top three rival schools. If you were the dean with a limited...
-
1. Does IKEA have a truly global strategy, or just a series of regional strategies? Explain. 2. Discuss IKEA's global strategy in terms of the five global product and communications strategies. 3. If...
-
Describe how marketing channel members add value in the channel of distribution between manufacturers and consumers.
-
1. No U.S.-based automotive manufacturers were victimized by this price-fixing scheme by Japan-based suppliers selling to Japan-based buyers in the United States. Should companies from different...
-
Show that if a liquid is in equilibrium with its own vapour and an inert gas in a closed vessel, then \[\frac{\mathrm{d} p_{v}}{\mathrm{~d} p}=\frac{ho_{v}}{ho_{l}}\] where \(p_{v}\) is the partial...
-
a. Describe the meaning of the term thermodynamic equilibrium. Explain how entropy can be used as a measure of equilibrium and also how other properties can be developed which can be used to assess...
-
Show that when different phases are in equilibrium the specific Gibbs energy of each phase is equal. Using the following data, show the pressure at which graphite and diamond are in equilibrium at a...
Study smarter with the SolutionInn App