Question

using excel functions

1. Sunshine Music Shop bought a stereo for $800 and marked it up 30% on selling price. To promote customer interest, Sunshine marked the stereo down 10% for 1 week. Since busi- ness was slow, Sunshine marked the stereo down an additional 5%. After a week, Sunshine marked the stereo up 2%. What is the new selling price of the stereo to the near- est cent? What is the markdown percent based on the original selling price to the nearest hundredth percent?

2. Alvin Rose owns a fruit and vegetable stand. He knows that he cannot sell all his produce at full price. Some of his produce will be markdowns, and he will throw out some produce. Alvin must put a high enough price on the produce to cover markdowns and rotted produce and still make his desired profit. Alvin bought 500 pounds of tomatoes at 16 cents per pound. He expects a 10% spoilage and marks up tomatoes 55% on cost. What price per pound should Alvin charge for the tomatoes?

3. Angel Company produces car radios. Given the following, calculate (1) the contribution margin (CM) and (2) the breakeven point (BE) for Angel Company.

   Fixed cost (FC) $96,000 Selling price (S) per radio $240 Variable cost (VC) per radio $80

Answer 1

Thank you for your patience. Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks!

Answer 1
Sunshine Music Shop	Amount $	Note
Purchase cost	800.00	A
Mark up @ 30%	240.00	B=A*30%
Selling price	1,040.00	C=A+B
Mark down by 10%	104.00	D=C*10%
Sell price in 1st week	936.00	E=C-D
Mark down by 5%	46.80	F=E*5%
Revised Sell price	889.20	G=E-F
Mark down by 2%	17.78	H=G*2%
New selling price	871.4	I=G-H
Mark down from Original	168.6	J=C-I
Mark down %	16%	K=J/C
Answer 2
Alvin Rose	Amount $	Note
Pounds purchased	500.00	L
Cost per pound	0.16	M
Total cost	80.00	N=L*M
Mark up @ 55 %	44.00	O=N*55%
Total sale value	124.00	P=N+O
Pounds purchased	500.00	See L
Spoilage up @ 10 %	50.00	Q=L*10%
Pounds sold	450.00	R=L-Q
Sell price per pound	0.28	S=P/R
Answer 3
Angel Company	Amount $	Note
Selling price	240.00	T
Less: variable costs	80.00	U
Contribution margin per unit	160.00	V	Answer 1
Fixed costs	96,000.00	W
Breakeven point	600.00	X=W/V	Answer 2