Verterra Nurseries, located in Wellington County, Ontario, Canada, has been in business since 1945, providing a...

    

Transcribed Image Text:

Verterra Nurseries, located in Wellington County, Ontario, Canada, has been in business since 1945, providing a large variety of locally grown plants, bulbs, flowers, trees and shrubs. In the early years, they operated only seasonally. Still, as the business expanded and costs increased, they needed to branch out into other goods and services that would make their business profitable 12 months of the year. Over the past 70 years, their business has grown to 25 stores across Canada. They also operate a Gift Shop selling garden supplies and accessories and seasonal giftware. In November and December, they operate their Indoor Christmas Extravaganza offering a large selection of seasonal plants, Christmas trees and decorations. This winter, they are planning a new landscape design and construction service scheduled to be available in the summer of 2021. Initially, they will offer a basic 12 x 12 composite deck along with a 12 x 12 fully enclosed sunroom. Verterra Nurseries is currently reviewing the pricing for three of their best-selling items and finalizing pricing for the new landscape services. The table below shows the costs, markups, margins, and discounts used for their product offerings pricing and discount structures. Operating expenses (OE) % of COGS Markup Gross Profit Margin (GPM) Introduction 75% 210% Growth 45% 150% Maturity 25% 45% Decline 15% 25% Operating expenses (OE) % of COGS Markup Gross Profit Margin (GPM) Rate of Markdown 12 x 12 Composite Deck PLC: Introduction Introduction 75% 210% 20% 12 x 12 Enclosed Sunroom PLC: Introduction 4 Growth 45% 150% 25% Best-Selling Products 6-pack Flowering Spring Bulbs PLC: Growth Maturity 25% 45% 40% Large Clay Planter PLC: Maturity Decline 15% 25% 45% Assorted Garden Gnomes PLC: Decline Question 3 (1 point) Calculate the markup dollar amount on the 12x12 enclosed sunroom that costs $3,600. Verterra Nurseries, located in Wellington County, Ontario, Canada, has been in business since 1945, providing a large variety of locally grown plants, bulbs, flowers, trees and shrubs. In the early years, they operated only seasonally. Still, as the business expanded and costs increased, they needed to branch out into other goods and services that would make their business profitable 12 months of the year. Over the past 70 years, their business has grown to 25 stores across Canada. They also operate a Gift Shop selling garden supplies and accessories and seasonal giftware. In November and December, they operate their Indoor Christmas Extravaganza offering a large selection of seasonal plants, Christmas trees and decorations. This winter, they are planning a new landscape design and construction service scheduled to be available in the summer of 2021. Initially, they will offer a basic 12 x 12 composite deck along with a 12 x 12 fully enclosed sunroom. Verterra Nurseries is currently reviewing the pricing for three of their best-selling items and finalizing pricing for the new landscape services. The table below shows the costs, markups, margins, and discounts used for their product offerings pricing and discount structures. Operating expenses (OE) % of COGS Markup Gross Profit Margin (GPM) Introduction 75% 210% Growth 45% 150% Maturity 25% 45% Decline 15% 25% Operating expenses (OE) % of COGS Markup Gross Profit Margin (GPM) Rate of Markdown 12 x 12 Composite Deck PLC: Introduction Introduction 75% 210% 20% 12 x 12 Enclosed Sunroom PLC: Introduction 4 Growth 45% 150% 25% Best-Selling Products 6-pack Flowering Spring Bulbs PLC: Growth Maturity 25% 45% 40% Large Clay Planter PLC: Maturity Decline 15% 25% 45% Assorted Garden Gnomes PLC: Decline Question 3 (1 point) Calculate the markup dollar amount on the 12x12 enclosed sunroom that costs $3,600.

Answer rating: 100% (QA)

Calculation of Mark up amount of 12x12 Enclosed sunroom P... View the full answer