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1.1 Elkins, a manufacturer of ice makers, realizes a cost $250 for every unit it produces, Its total fixed costs equal $5 million. If the company manufactures 500,000 units, compute the following:a.Unit costb.Markup price if the company desires a 10% return on salesMarkup price = unit cost(1- desired return on sale)c.ROI price if the company desires a 25% return on an investment of $1 million1.2 A gift shop owner purchases items to sell in her store. She purchases a chair for $125 and sellit for $275. Determine the following: a.Dollar markupb.Markup percentage on cost = dollar markupcostc.Markup percentage on selling priceMarkup percentage on selling price = dollar markupSelling price $150= 0.54$2751.3 A consumer purchases a coffee maker from a retailer for $90. The retailer’s markup is 30%, and the wholesaler’s markup is 10%, both based on selling price. For what price does the manufacturer sell the product to the wholesaler? Suggest retail price $90Minus retail margin (30%): -$27
Retailer’s cost/wholesaler’s price: $63Minus wholesaler’s margin (20%): -$12.6 Wholesaler’s cost $50.4 1.4 A lawn mower manufacturer has a unit cost of $140 and wishes to achieve a margin of 30% based on selling price. If the manufacturer sells directly to a retailer who then adds a set margin of 40% based on selling the price, determine the retail price charged to consumers.Suggest retail price $140Minus retail margin (30%): -$42Retailer’s cost/wholesaler’s price: $98Minus wholesaler’s margin (40%): -$39.2 Wholesaler’s cost $58.8 1.5 Advanced