Mar3023 Lecture 7.7.10

# Mar3023 Lecture 7.7.10 - to buy the litter from a family It...

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Crystal Cozart July 7, 2010 1.) P. 91 Cottage Grove apartments have finally realized it was a bad business decision to build condos more than 2 miles from campus while students are their target consumers. They are in jeopardy of going bankrupt and just want to be able to play the bank. Their total fixed costs are \$30,000 after furnishing all their rooms. Their total variable costs are \$8,000. There are 20 condos with 4 rooms in each condo. What do they have to charge per room just to pay the bank back? a. \$475 b. \$8,375 c. \$200 d. \$16,000 e. \$300 2.) P. 93-94 Delilah’s Puppies is a pet store that is against puppy mills and only sells puppies from small families whose dogs have puppies. Delilah just got in a litter of 6 Yorkies, and is trying to figure out how much she should charge for the little cuties. It cost her \$1800
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Unformatted text preview: to buy the litter from a family. It costs her \$20 a day to feed, bathe, and care for the puppies. Her target profit for the entire liter is \$1000. How much should Delilah charge for the puppies if she sells them all in day after caring for them for 10 days? a. \$1200 b. \$650 c. \$500 d. \$425 e. \$360 3.) P. 95 Ryan owns a small store in the mall and sells make-up. Ryan is running low on supplies and decides to order a new product for his lovely customers called Bare Minerals because it is better for your skin. The manufacturer is trying to decide what price to charge Ryan. They assume the retail price will be set at \$86 and the markup is 60%. What is the retailer’s cost of good? a. \$ 215 b. \$ 50.40 c. \$ 37.00 d. \$34.40 e. \$198...
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