4A Marketing Applications (Answers to Exercises)

Chapter 4: Marketing Applications (answers to exercises)

  • 4.1 Discounts

  1. N = $568.40; D$ = $411.60
  2. L = $800; D$ = $200
  3. N = $1,133.16; d = 42.625%; D$ = $841.84
  4. L=$500; d = 26.7904%; D$ =$133.95
  5. $259.97
  6. $24.32
  7. 31.985%
  8. $19.99
  9. d = 43.972%; L = $51.76
  10. L = $24; N = $13.92
  11. d = 62.8%; L = $700; D$ = $439.60
  12. d = 24%; N = $303.99;  D$ = $96
  13. $1,025.10
  14. d = 63.14%; N = $29.49
  15. $1,194,553.06
  16. 2 years 216 days
  17. Reduced by 17.4154%
  18. a. 3%, b. $2.50
  19. a. 52.2328%; b. $3,073.82
  20. a. $74.99; b. $60.91; c. L = $78.74; N = $63.96; D$ =$14.78

  • 4.2 Markup

  1.  S=$321.95; SBE =$236.95; M$=$133.53; MoC%=70.8683%; MoS%=41.4754%
  2. C=$653.59; SBE =$849.67; M$=$346.41; MoC%=53.0011%; MoS%=34.6413%
  3. C=$118.25; S=$301.53; E=$153.13; MoS%=60.7833%; SBE =$271.38
  4. M$=$96.25; P=$41.25; C=$178.74; SBE =$223.74
  5. C=$744.83; S=$1,284.83; P=$204.83; MoC%=72.5%; MoS%=42.0289%
  6. M$=81.60; S=$201.60; E=$51.36; MoS%=40.4762%; SBE =$171.36
  7. P=$175; S=$1,447.37; C=$1,172.37; MoC%=23.4568%; SBE =$1,272.37
  8. C=$220; S=$287.50; M$=$67.50; MoS%=23.4783%; MoC%=30.6818%
  9. $112.50
  10. 125%
  11. $27,996.79
  12. $57.05
  13. a. $733.03; b. $219.91; c. 53.3151%; d. $698.03
  14. a. $119.95; b. $40.85; c. 51.6435%; d. 34.0559%; e. 28.8887%
  15. $20.82
  16. $102.40
  17. 42.8571%
  18. $488.09
  19. a. $40.47; b. $21.79; c. $62.26; d. $14.51; e. $12.20; $2.31 reduction
  20. a. $12.65; b. $17.71; c. $0.63; d. MoS% = 28.5714%; e. C = $15.18; S = $21.25; P = $0.76; MoS% = 28.5647%

  • 4.3 Markdown

  1.  D$=$153.95; Sonsale=$285.90
  2. S = $299.95; d = 33.3389%
  3. D$ = $275; d = 26.1905%
  4. Sonsale =$25,525; d=11.2945%
  5. S = $19,701.42; D$ = $6,501.47
  6. S=$319.42; Sonsale =$281.09
  7. Sonsale = $53.99
  8. D$ = $45; d = 52.9474%
  9. d = 14.9%
  10. S = $133.30; D$ = $93.31
  11. Sonsale = $384.99; S=$699.98
  12. d = 36.7893
  13. a.Ponsale =$2.59; b. P = $74.55;
  14. d = 10.9512%
  15. a.Sonsale =$1,519.05; b. Ponsale =$303.81; c. S = $2,025.40; d. P = $810.16
  16. Sonsale =$367.20
  17. a.Sonsale= $282.91; b. d = 29.2637%; c. MoS% = 23.8026%
  18. D = 32.4325%
  19. Sonsale =$1,680; b. MoS% when on sale = 32.8571%; c. Ponsale =$192.0
  20. a. Sonsale =$1,614.06; b. S = $2,152.08; c. M$ = $956.48; MoC% = 80%

  • 4.4 Merchandising

  1.  M$=$50; C=$50; P=$38; SBE = $62; D$ = $33; Sonsale =$67
  2. S = $50; C = $20; E = $10; SBE = $30; MoC% = 150%; MoS% = 60%; d = 26%
  3. M$ = $18.75; S = $75; E = $11.25; SBE = $67.50; MoS% = 25%; D$ = $10.01; d= 13.346̅%
  4. E =$35.50; M$ = $56.99; P = $21.49; MoC% = 132.5348%; D$ =$10; Sonsale =$89.99
  5. P=$3.46; Ponsale =$0.46
  6. P=$17;Ponsale =$3.50
  7. C = $2.30; Coupon Redemption = $1
  8. S = $74.95; Rebate Redemption = $15
  9. a. M$ = $10.45; S = $19.95; P = $2.99; E = $7.46; MoS% = 52.381%, 9b. Sonsale=$15.96; D$=$3.99; M$onsale =$6.46; MoS%onsale =40.4762%
  10. a. P = $1.36; b. Ponsale =$0.51; c. SBE = $1.48
  11. S=$425;Sonsale =$225
  12. Ponsale =$1.17
  13. Ponsale =$0.08; The promotion is profitable and generates a total profit of $0.08 × 300,000 =$24,000
  14. Ponsale =-$1.10; The promotion is not profitable and generates a loss of $1.10 × 50,000 =$55,000
  15. a.E = $2,250; b. M$ = $4,500; c. S = $19,500; d. MoS% = 23.0769%; e. Sonsale=$17,550; f. D$ = $1,950; g. Ponsale =$250; h. MM = $3,768.75
  16. a. Use the coupon; b. Increase in profit = $3,980
  17. Choose Supplier 2 since $75.85 more profit is earned.
  18. Sonsale =$720
  19. Ponsale =$6.06
  20. a. E = $16.00; b. P = $27.99; c. M$ = $43.99; d. MoS% = 54.9944%, e. MoC% = 122.1944%, f. Sonsale =$55.99; g. D$ =$24.00; h. Ponsale =$3.99; i. MM = $41.59

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Fundamentals of Business Math Copyright © 2021 by Ana Duff, adapted from work by J. Olivier and D. Lippman is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.

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