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# Answer to Question #195857 in Marketing for kavita

Question #195857

Raw Cotton $28.00 Spinning/Weaving/Dyeing$12.00

Cut/Sew/Finishing $10.00 Material Transportation$ 3.00

Factory Fees $16.00 Inspection and Import Fees$14.00

Ocean Freight/Insurance $15.00 Warehousing$ 8.00

Packaging $15.00 Promotion$30.00

Customer Shipping $15.00 Given the cost per king-size sheet set above, and assuming the manufacturer has total fixed costs of$600,000 and estimates first year sales will be 50,000 sets Answer the following questions:

Determine the price to consumers if the company desires a 50 percent mark-upon cost. (15 marks)

1
2021-05-31T17:01:02-0400

Cost per king sheet set will be

$28 +$12 + $10 +$3 + $16 +$14 + $5 +$8 + $15 +$30 + $15 =$ 156

Evaluated first year deals = 50,000 sets

All out fixed expense = $600,000 Normal fixed expense per extra large sheet set = 600,000/50,000 =$12

Absolute Cost per extra large sheet set = $156 +$12 = $168 Wanted edge on deals = 50 % Let us consider the deal cost to be$100x

On the off chance that edge is 50% of the deals that implies edge = (50/100)*100x = 50x

Along these lines, cost ought to be= $(100 - 50) =$60x

Likewise, cost = $168 → 168 = 60x → x = 166/60 = 2.8 In this way, deal cost =$(100*2.8) = $280appx. 10-14 Presently, Company offers first to the distributer who at that point offers it to retailer. Retailer at that point offers it to clients at a cost of$288

Since retailer gets the edge of 20%, So the edge of retailer will be = (20/100)*288 = $57.6 Henceforth the cost at which retailer gets the sheet set from distributer will be =$(288-57.6) = $230.4 Distributer sells the sheet set to the retailer for$230.4 and gets the edge of 10%

→ edge of the distributer = $(10/100)*230.4 =$23.4

Thus the cost at which distributer gets the sheet set = $(230.4 - 23.4) =$207

In this way, cost at which organization currently offers to the distributer will be \$207

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