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Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
Edition 7ISBN: 978-1285448596Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
Edition 7ISBN: 978-1285448596 Exercise 23
If Costco pays $37.50 for the vacuum cleaner shown here,
a. What is the percent markup based on selling price?
b. If Costco pays $1.50 to the insurance company for each product replacement policy sold, what is the percent markup based on selling price of the vacuum cleaner and policy combination?
c. If 6,000 vacuum cleaners are sold in a season and 40% are sold with the insurance policy, how many additional "markup dollars," the gross margin , was made by offering the policy?
d. (Optional) As a housewares buyer for Costco, what is your opinion of such insurance policies, considering their effect on the "profit picture" of the department? How can you sell more policies?
a. What is the percent markup based on selling price?
b. If Costco pays $1.50 to the insurance company for each product replacement policy sold, what is the percent markup based on selling price of the vacuum cleaner and policy combination?
c. If 6,000 vacuum cleaners are sold in a season and 40% are sold with the insurance policy, how many additional "markup dollars," the gross margin , was made by offering the policy?
d. (Optional) As a housewares buyer for Costco, what is your opinion of such insurance policies, considering their effect on the "profit picture" of the department? How can you sell more policies?
Explanation
Verified
Verified
a)
C pays
for vacuum cleaner and sell...
Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman
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