Question

Answer must be TXT by keyboard, avoid handwriting or picture please

Answer must be TXT by keyboard, avoid handwriting or picture please

Answer must be TXT by keyboard, avoid handwriting or picture please

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9.      Which product has the highest markup rate: iPod Nano, bottled water, or a text message? Answer the questions to find out!

        (a) An iPod Nano costs $45 to make, but sells for $160. Find the markup rate.

        (b) Bottled water sells for around $1.75 and costs the companies 4¢ to make. Find the markup rate.

(c) A text message costs around 15¢, but it costs the company 0.3¢ to process. Find the

markup rate.

(d) Which product has the highest markup rate? Were you surprised?

Answer 1

Markup Rate = Selling price-cost/Cost*100

(a) Markup rate for iPod = $160-$45/$45*100 = 255.56%

(b) Markup rate for water bottle = $1.75-$0.04/$0.04 = 4275%

(c) Markup rate for text message = $0.15-$0.003/$0.003 = 4900%

(d) Text messages have the highest markup rate.