This preview shows page 1. Sign up to view the full content.
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 salons markup is 40 percent and the wholesalers 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
This note was uploaded on 01/18/2012 for the course JOMC 475 taught by Professor Heidihennink-kaminski during the Spring '11 term at UNC.
- Spring '11