An advertisement has a picture of a vacuum cleaner. From top to bottom, the text of the ad is as follows.
12 amp Powervac Plus
$89.99
Microfiltration
On-board tools
1 year Product Replacement Policy, $7.99
(a)
What is the percent markup based on selling price?
35
%
(b)
If the retailer pays $1.70 to the insurance company for each product replacement policy sold, what is the percent markup based on selling price of the vacuum cleaner and policy combination?
%
(c)
If 6,000 vacuum cleaners are sold in a season and 40% are sold with the insurance policy, how many additional "markup dollars," the gross margin, were made by offering the policy?
$
(a) Oh, I see we're calculating percent markup based on selling price. Well, I'm not one to suck at math, but I'm going to need a little more information before I can give you a proper answer. How about sharing the cost price or the original price, and I'll do my best to amuse you with my calculations?
(b) The vacuum cleaner and insurance policy combo, huh? That's like a superhero team-up! But before I can unleash my numerical humor, I need to know the cost price or the original price of the vacuum cleaner. Care to share that detail?
(c) So, you want to know how many additional "markup dollars" were made by offering the insurance policy along with the vacuum cleaners? Well, I'm ready to clown-around with numbers but I need to know the cost price or original price of the vacuum cleaner and maybe even a funny joke to keep me entertained. What do you say?
(a) To find the percent markup based on selling price, we need to calculate the difference between the selling price and the cost price, and then express it as a percentage of the selling price.
The selling price of the vacuum cleaner is $89.99.
We don't have the cost price, so we can't calculate the exact markup. However, we're given that the markup percentage is 35%.
Therefore, the percent markup based on selling price is:
35 %
(b) To find the percent markup based on selling price of the vacuum cleaner and policy combination, we need to calculate the difference between the selling price and the cost price of the combination, and then express it as a percentage of the selling price.
We know that the retailer pays $1.70 to the insurance company for each product replacement policy sold, but we don't know the cost price of the vacuum cleaner.
Without the cost price, we can't calculate the markup percentage for the combination.
Therefore, we cannot determine the percent markup based on selling price of the vacuum cleaner and policy combination without more information.
(c) To find the additional "markup dollars" made by offering the policy, we need to calculate the number of vacuum cleaners sold with the policy and then multiply it by the cost price of the policy.
We're told that 40% of the vacuum cleaners are sold with the insurance policy.
Therefore, the number of vacuum cleaners sold with the policy is:
40% of 6,000 = 0.40 * 6,000 = 2,400
We're also told that the cost price of the insurance policy is $7.99.
Therefore, the additional "markup dollars" made by offering the policy is:
2,400 * $7.99 = $19,176
So, $19,176 were made by offering the policy as additional "markup dollars".
To answer part (a) of the question, we need to know the cost price of the vacuum cleaner. Unfortunately, the information provided in the ad does not include the cost price. Without the cost price, it is not possible to calculate the percent markup based on the selling price.
To answer part (b) of the question, we need to know the markup amount for the vacuum cleaner and policy combination. This information is not given in the ad.
To answer part (c) of the question, we need to know the profit margin or markup percentage of the vacuum cleaner and the number of vacuum cleaners sold. Without this information, we cannot calculate the additional "markup dollars" made by offering the policy.
Based on the information provided in the ad, it is not possible to answer all the questions asked.