Marketing assignment(include calculation)

Assignment 5 (Chapter 19)

Imagine you are a member of a student organization and you have decided to do a fundraiser for a trip you will take later this year. You have decided to sell T-shirts and Sweatshirts at DCOBA to raise money. You have found a supplier that will sell you the T-shirts at $5.00 each and the Sweatshirts for $10.00 each. Your organization can add on a markup onto those costs when you sell the apparel to students, and keep the profit for your organization. (For full credit, please show your work!)

1. Suppose your organization wants to achieve a 45% return on sales on the T-shirts. What price should you charge the students for a T-shirt?

2. If you want to achieve the same 45% return on sales on Sweatshirts, what price should you charge for a Sweatshirt?

3. Suppose you want to avoid making change and decide to charge an even $10.00 for the T-shirts. What is your new return on sales percentage?

4. Suppose you decide to avoid making change on the Sweatshirts as well, and set your price at $15.00. What is your new return on sales percentage?

5. At the end of the first week, sales are high. Your organization is excited by the success and would like to start selling in the student center as well. You expect to sell at least twice as many shirts, so you’ll be increasing your order from the supplier. The supplier might be willing to give you a discount, since the order will be large. Your goal is to get a 60% return on sales on the T-shirts and a 40% return on sales on the Sweatshirts. Your price for the T-shirts will still be $10.00 and $15.00 for the Sweatshirts. To achieve these goals, what cost will you need to request from the supplier?

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