Maritime Cellular purchases a BlackBerry smart-phone model for $595 less trade discounts of 20% and 10%.Maritime's overhead expenses are $59 per unit.
a) What should be the selling price to generate a profit of $40 per phone?
b) What is the rate of mark-up on cost?
c) What is the rate of mark-up on selling price?
d) What would be the break-even selling price for a clear-out sale in preparation for the launch of the new model?

Question

Quizplus · Accepted Answer

The Answer of Maritime Cellular purchases a BlackBerry smart-phone model for $595 less trade discounts of 20% and 10%.Maritime's overhead expenses are $59 per unit.
a) What should be the selling price to generate a profit of $40 per phone?
b) What is the rate of mark-up on cost?
c) What is the rate of mark-up on selling price?
d) What would be the break-even selling price for a clear-out sale in preparation for the launch of the new model?

Maritime Cellular Purchases a BlackBerry Smart-Phone Model for $595 Less