Exercises for channel of distribution MARKUP Exercises for channel of distribution

In Example 6. 3A, the selling price is $113. 40 while the cost is $84 In Example 6.3A, the selling price is $113.40 while the cost is $84.00. The difference between selling price and cost 113.40 84.00 $29.40. This difference covers operating expenses of $21.00 and a profit of $8.40 and is known as the markup, margin, or gross profit.

Using this relationship between markup, expenses, and profit, the relationship stated in Formula 6.6 becomes

6.3B Ex. Compucorp bought two types of electronic calculators for resale. Model A costs $42.00 and sells for $56.50. Model B costs $78.00 and sells for $95.00. Business overhead is 24% of cost. For each model, determine (i) the markup (or gross profit); (ii) the operating expenses (or overhead); (iii) the profit.

(iii) the total profit realized. 6.4B Ex. A ski shop bought 100 pairs of skis for $105.00 per pair and sold 60 pairs for the regular selling price of $295.00 per pair. The remaining skis were sold during a clearance sale for $180.00 per pair. Overhead is 40% of the regular selling price. Determine (i) the markup, the overhead, and the profit per pair of skis sold at the regular selling price; (ii) the markup, the overhead, and the profit per pair of skis sold during the clearance sale; (iii) the total profit realized.

Ex 6.5 b Giuseppe’s buys supplies to make pizzas for $4. Operating expenses of the business are 110% of the cost and the profit made is 130% of cost. What is the regular selling price of each pizza?

6.6 Ex. Neptune Dive Shop sells snorkelling equipment for $50. The shop’s cost is $25 and the operation expenses are 30% of the regular selling price. How much profit will the shop make on each sale?