A 25% markup, followed by a 20% margin, followed by a 30% margin

To figure out the answer, students should just assume some initial cost (e.g., $1):

a) Selling Price = Markup (%) * Cos

= 1.25 * 1 = $1.25

Then, given we know the margin (20% or .2), we can solve for the selling price (SP):

Margin % = Unit Margin / SP = (SP - Cost) / SP

.2 = (SP - 1.25) / SP

.2 * SP = (SP - 1.25)

1.25 = SP - .2SP = .8SP

1.25 / .8 = SP = $1.56

Then, solve for the next margin (simplified: always divide cost by 1 minus margin)

$1.56 / 0.7 (30% margin) = $2.23

b) $1 / 0.75 = $1.33

Then, solve for the markup: 1.2 * $1.33 = 1.60

Then solve for the next markup: 1.3 * $1.60 = $2.08

c) $1 * 1.25 = $1.25

Then, solve for the next markup: $1.25 * 1.2 = $1.50

Then, solve for the last margin: $1.50 / 0.7 = $2.14

d) $1 / 0.75 = $1.33

Then, solve for the next margin: $1.33 / 0.8 = $1.66

Then add the markup: $1.66 * 1.3 = $2.16 You are running a company that produces backpacks. Currently, there are several competitors in the field, but you see an untapped niche for university students who commute one or more hours into school, and need space for their books and laptops, but also a change of clothes. There are approximately 3,568,000 people living in Alberta. Based on your market research, you believe that approximately 0.7% of them fit the above criteria. You estimate that you might be able to initially capture 22% of this market (with 43% buying your competitors' products, and 35% not buying a backpack). Calculate the total size of the market segment who will purchase a backpack, and the size of the segment that you believe you can capture.

16,234 & 5,495

16,234 & 24,976

24,976 & 5,495

24,976 & 16,234

None of these are correct. The dog population in Canada was just over five million in 2014, with 32.0% of Canadian homes owning a dog, down slightly from 32.3% in 2013. Over the next few years, dog food sales are projected to grow in constant value at a CAGR of 3%, to total CAD $1.1 billion in 2015. Furthermore 80% of all pet food sold in Canada is dry the rest is wet or fresh food. 60% of all wet/fresh dog food purchased is premium pet food and 30% of all dry food purchased is premium. There is a premium price charged of 30% more on Premium pet food. Based on this information estimate how many dogs were fed Premium dry dog food in Canada in 2014?

1,200,000 dogs

5,600,000 dogs

400,000 dogs

800,000 dogs

Not enough information is provided or none of these are correct. A 50% markup, followed by a 10% margin, followed by a 15% markup

To figure out the answer, students should just assume some initial cost (e.g., $1):

a) $1 * 1.5 = $1.50

Then, solve for the margin: $1.50 / 0.9 = $1.67

Then, solve for the margin: $1.50 / 0.85 = $1.96

b) $1 / 0.5 = $2

Then, solve for the markup: 1.3 * $2 = $2.60

c) $1 * 1.75 = $1.75

Then, solve for the next markup: $1.75 * 1.2 = $2.10

d) $1 / 0.75 = $1.33

Then, solve for the next margin: $1.33 / 0.85 = $1.56

Then, solve for the next markup: $1.56 * 1.3 = $2.03