Unformatted text preview: 1. A consumer purchases a flat iron to straighten her hair for $150 from a salon at which she gets her hair cut. If the salon’s markup is 40 percent and the wholesaler’s markup is 15 percent, both based on their selling prices, for what price does the manufacturer sell the product to the wholesaler? 2. If the unit variable costs for each flat iron are $40 and the manufacturer has fixed costs totaling $200,000, how many flat irons must this manufacturer sell to break even? How many must it sell to realize a profit of $800,000? Fixed cost Breakeven volume = ———————— Price – Variable Cost...
View Full Document
- Spring '11
- Marketing, Suggested retail price, cost Breakeven volume