Judy's Jewelry sells necklaces to retailers across the country.Her gross margin can run as high as 35%.
Required:
a.If the sales price for a pearl necklace is $249, what is the cost to make it, assuming a 35% gross margin?
b.If Judy were to increase the cost of producing the pearl necklace to $166, what would be the markup percentage at the $249 sales price?
c.If Judy were to increase the cost of producing the pearl necklace to $166, what would be the sales price at a 35% gross margin?

Question

Quizplus · Accepted Answer

The Answer of Judy's Jewelry sells necklaces to retailers across the country.Her gross margin can run as high as 35%.
Required:
a.If the sales price for a pearl necklace is $249, what is the cost to make it, assuming a 35% gross margin?
b.If Judy were to increase the cost of producing the pearl necklace to $166, what would be the markup percentage at the $249 sales price?
c.If Judy were to increase the cost of producing the pearl necklace to $166, what would be the sales price at a 35% gross margin?

Judy's Jewelry Sells Necklaces to Retailers Across the Country