Question

Please show all work

NAME (print neatly): Score (last name, first name) Markup Problem. Consider a situation, where a machine shop is bidding a contract for to provide an aluminum manifold. The costs per unit are $51.36 and the price the component will sell for is $96.42. Important to show all work and provide appropriate units with two decimal places. 1. What is the markup based on cost and price? (1 point for each part) Markup as a percentage of cost Markup as a percentage of price 2. How many units must be sold to achieve a profit of $175k? (2 points) 3. Now, assume costs of $57.51, what would the unit price need to be if the manufacturer used a markup as a percentage of the price of 39%? (3 points) Now, assume a price of $91.77, what would the unit costs need to be if the manufacturer used a markup as a percentage of the cost of 39%13 points) 4.

Answer 1

answer 1)
	Markup as percentage of cost =				=(96.42-51.36)/51.36
	Markup as percentage of cost =				87.73%
	Markup as percentage of Price =				=(96.42-51.36)/96.42
	Markup as percentage of Price =				46.73%
answer 2)
	Profit per unit =		=(96.42-51.36)		45.06
	required profit =				175000
	Number of unit = required profit/ profit per unit				3,884
answer 3)
	Cost =				57.51
	Mark up on price =				39%
	required price = 57.51/(1-39%)				94.28
answer 4)
	Price per unit =				91.77
	Mark up as percentage on cost =				39%
	unit cost =	=91.77/(1+39%)			66.02