Question;Case 8-3 TemplateINSTRUCTIONS:Read the case in the;textbook. As a team, answer the questions in this spreadsheet, then save;and submit the assignment as one Microsoft? Excel? attachment. Also;submit a 1-paragraph Microsoft? Word document explaining any issues or;successes you had in answering these questions.THE CASE INFORMATION: The;Artist Palette sells high-end art supplies to the art students at three;regional art and design schools in Philadelphia, Washington DC and;Baltimore. It carries paints, brushes, drawing pads, frames, charcoal;pastels, and other supplies used in a variety of artistic media. Because;the clientele is very discriminating, the Artist Palette tends to carry;on the top lines in its inventory and it is known for having the best;selection on hand. It is rare that an item is out of stock. Artist can;visit the store, purchase from the Artist Palette catalog, or from the;secure web site.Refer to and use the following abbreviations for the problems below:? PP = Parma minimum supply purchase? S1 = Supplier 1? S2 = Supplier 2? CDF = Chain Discount Factor? NP = Net Price? NDE = Net Decimal Equivalent? TD = Trade Discount1.;The Artist?s Palette purchases its inventory from a number of suppliers;and each supplier offers different purchasing discounts. The manager of;The Artist?s Palette, Marty Parma, is currently comparing two offers;for purchasing modeling clay and supplies. The first company offers a;chain discount of 20/10/5, and the second company offers a chain;discount of 18/12/7 as long as the total purchases are $300 or more.;Assuming Parma purchases $300 worth of supplies, a) what is the net;price from supplier 1? And b) From supplier 2? And c) From which;supplier would you recommend Parma purchase her modeling clay and;supplies?2. What is the net decimal equivalent for supplier 1? For supplier 2?3. What is the trade discount from supplier 1? From supplier 2?4.;The Artist?s Palette recognizes that students may purchase supplies at;the beginning of the term to cover all of their art class needs. Because;this could represent a fairly substantial outlay, the Artist?s Palette;offers discounts to those students who pay sooner than required. Assume;that if students buy more than $250 of art supplies in one visit, they;may put it on a student account with terms of 2/10, n/30. If a student;purchases $250 of supplies on September 16, what amount is due by;September 26? How much would the student save by paying early?5.;Assume that if students buy more than $250 of art supplies in one visit;they may put the charge on a student account with terms of 2/10 EOM. If;a student makes the purchase on September 16, on what day does the 2%;discount expire? If the purchase is made on September 26, on what day;does the 2% discount expire? If you were an art student, which method;would you prefer: 2/10, n/30, or 2/10 EOM?Case 9-1 TemplateINSTRUCTIONS;Read the case in the textbook. As a team, answer the questions in this;spreadsheet, then save and submit the assignment as one Microsoft?;Excel? attachment. Also, submit a 1-paragraph Microsoft? Word document;explaining any issues or successes you had in answering these;questions.CASE INFORMATION: Karen is an acupuncturist with a busy;practice. In addition to acupuncture services, Karen sells teas, herbal;supplements, and rice- filled heating pads. Because Karen?s primary;income is from acupuncture, she feels that she is providing the other;items simply to fill a need and not as an important source of profits.;As a matter of fact, the rice- filled heating pads are made by a patient;who receives acupuncture for them instead of paying cash. The rice-;filled pads cost Karen $ 5.00, $ 8.00, and $ 12.00, respectively, for;small, medium, and large sizes. The ginger tea, relaxing tea, cold;flu tea, and detox tea cost her $ 2.59 per box plus $ 5.00 shipping and;handling for 24 boxes. Karen uses a cost plus markup method, whereby;she adds the same set amount to each box of tea. She figures that each;box costs $ 2.59 plus $ 0.21 shipping and handling, which totals $ 2.80;then she adds $ 0.70 profit to each box and sells it for $ 3.50. Do you;think this is a good pricing strategy? How would it compare to marking;up by a percent-age of the cost?Refer to and use the following abbreviations for the problems below:? BT = Box of tea? S&H = Shipping and handling? P = Desired profit per box of tea? RFP = Rice-filled pad1. What is the markup percentage for a box of ginger tea?2.;If the rice-filled heating pads sell for $7.00, $10.00, and $15.00 for;small, medium, and large, respectively, what is the markup percentage on;each one?3. Karen wants to compare using the cost plus method to;the percentage markup method. If she sells 2 small rice pads, 4 medium;rice pads, 2 large rice pads, and 20 boxes of $3.50 tea in a month, how;much profit does she accumulate? What markup percentage based on cost;would she have to use to make the same amount of profit on this month?s;sales?4. What prices should Karen charge (using the markup;percentage) to obtain the same amount of profit as she did with the cost;plus method? Do not include shipping.
Paper#62157 | Written in 18-Jul-2015Price : $27