Name:
Pricing Homework
MAR 255 – Professor Biittner
Show your values typed into the equation and then your answer.
Label your answer with
appropriate units.
1.
Find the number of meals the restaurant must serve to break even.
Average meal price = $35.00
Meals sold = 3,650/mo
Meal variable cost = $15.50
Total fixed costs = $32,800/mo
Break Even Volume = Fixed Cost / (Price/unit  Variable Cost/unit)
2.
Find the number of units the discount store must sell to break even
Price/unit = $1.00 for 7,500 units
Fixed costs/week = $2,550
Variable cost/unit = $0.23
Break Even Volume = Fixed Cost / (Price/unit Variable Cost/unit)
3.
Find the markup % based on cost
A retailer pays $3.85 for a DVD and sells it for $13.95.
Markup % on cost = (price – cost) / cost
4.
Find the markup % based on price.
A retailer pays $3.85 for a DVD and sells it for $13.95.
Markup % on price = (price – cost) / price
5.
Find the price they must charge for a winter coat to achieve 35% ROS.
The cost of winter coats from their suppliers is $38.50.
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 Spring '08
 CUSHMAN
 Yield management

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