Pricing Assignment $-$ Spring $2024$

Important: Show all calculations. If you do not show your calculations, you will not get credit. The calculations and answers can be submitted on this document or uploaded as a document or image. See Chapter $18$ on markup, break$-$even point $($BEP$),$ markup chain, and average$-$cost pricing. See Appendix B for the formula to calculate the markup if you only know cost. Keep in mind that Markup refers to a $\%$ of the final selling price, not of cost$.$

Retail store Carrington's purchased cashmere coats for men from a wholesaler for $$198\mathrm{.}00$ each. The store manager plans to take a $60\%$ markup on the coat. What will the final selling price be for the retail customer? $(10pts)$

Kelly's Toy Store sells jumbo beach balls to customers for $$15\mathrm{.}95.$ The store makes $$6\mathrm{.}38$ per ball it sells. What $\%$ markup is the store taking on each ball? $(10$ pts$)$

Keen Imagery, a maker of photo film and paper, is considering partnering with an inkjet printer company to develop a new mini smartphone Bluetooth printer that uses the company's proprietary film. Another company offers a basic smartphone printer for $$100-115.$ Keen Photo thinks it can sell its mini printer for more by capturing higher resolution output that can be printed in large sizes on photo printers. The total fixed cost for a new production line will be $$690,000.$ The variable cost, which includes such things as raw materials, components, and assembly$-$line labor, will be $$65\mathrm{.}00$ per unit. What will be their breakeven point $($BEP$)$ in units at each of these selling prices to retailers? $(5$ pts$).$

BEP units at $$129\mathrm{.}99$

BEP units at $$139\mathrm{.}99$

BEP units at $$149\mathrm{.}99$

How many additional units do they need to sell to have a net income of $$300,000$ at each retail price? $(5$ pts$)$

Additional units at $$129\mathrm{.}99$

Additional units at $$139\mathrm{.}99$

Additional units at $$149\mathrm{.}99$

Springlite Beverage Company plans to test market a new line of zero$-$calorie flavored water in $16\mathrm{.}9oz.$ bottles that will provide electrolytes without carbonation. They plan to offer three flavors. The Cherry will cost $$\mathrm{.}58$ with projected sales of $18,000.$ The LemonLime will cost $$\mathrm{.}63$ with projected sales of $23,000.$ The Peach will cost $$\mathrm{.}74$ with projected sales of $17,500.$ Each bottle is to retail at the same price. Using average cost pricing and a $60\%$ markup, what will be Springlite's price to final customers at the retail level? $(10pts).$

GamesOn manufactures pickleball paddles that it sells to wholesalers. GamesOn takes at $15\%$ markup. These wholesalers sell the paddles to retail sporting goods stores, taking a $25\%$ markup. These stores then sell them to the final customer, taking a $40\%$ markup. If it costs GamesOn $$40$ to make each paddle, what is the final selling price to the customer? $(10$ pts$)$