An educational toy store can buy a world globe for 30

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72. An educational toy store can buy a world globe for $30. If the store owner sells the globe for $45, what is the markup based on cost? a. 15 percent b. 20 percent c. 25 percent d. 33 percent e. 50 percent ANS: E Price - Cost = Markup $45 - $30 = $15 $15 ÷ $30 = 50% markup PTS: 1 REF: 303 OBJ: 19-5 TYPE: App TOP: AACSB Analytic | TB&E Model Pricing 73. An educational toy store can buy a world globe for $30. If the store owner sells the globe for $45, what is the markup based on the selling price? PTS: 1 REF: 303 OBJ: 19-5 TYPE: App TOP: AACSB Analytic | TB&E Model Pricing 74. _____ is the practice of marking up prices by 100 percent (or doubling the cost to set the selling price). PTS: 1 REF: 304 OBJ: 19-5 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing
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75. Keystoning is: PTS: 1 REF: 304 OBJ: 19-6 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing 76. The Nest is a retail store owned and operated by an interior designer. The markup on all items in the store is 100 percent over cost (or double the cost). In this case we would say that the designer uses: a. keystoning b. target ROI pricing c. break-even pricing d. marginalizing e. double sourcing ANS: A Keystoning is the practice of marking up prices by 100 percent (or doubling the cost to set the selling price). PTS: 1 REF: 304 OBJ: 19-5 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing 77. Profit maximization occurs when: PTS: 1 REF: 304 OBJ: 19-5 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing
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