1. The price elasticity of toilet paper is -2.0.
Based on this information, when a store raises the price of toilet paper by 16%, the demand is reduced by ? percent.
2.
Advanced Electronics manufactures DVDs and sells them directly to retailers who typically sell them for $16. Retailers take a 42% margin based on the retail selling price.
Advanced's cost information is as follows:
DVD package and disc $2.50 /DVD
Royalties $2.25/ DVD
Advertising and promotion $500,000
Overhead $200,000
What is the break-even volume in DVD units?
3. A store purchases a product for $465 and then it sells to customers at 50% margin on the selling price. The selling price is:
4. A gift shop owner purchases items to sell in her store. She purchases a chair for $ 142 and sells it for $ 276. Determine the Dollar mark-up PERCENTAGE on cost
5. The usual retail price of an item is $97. The manufacturer's cost to produce the item is $43. Retailers take a 51 percent markup and wholesalers take a 10 percent markup. What is the retailer's markup in dollars?
