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Goods/products
Differences
Services
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Selling price
Pricing formula
Product costs + Operating expenses
+ Profit
Markup
______________________________________________________________________
______________________________________________________________________
Markdown
______________________________________________________________________
______________________________________________________________________
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Good/product or
service costs
$14
$8
$12
$23
$17
$70
?
?
?
?
?
?
Operating
expenses
$7
$4
$6
$8
$9
$17
Profit
$18
$12
$18
$34
$8.50
$47.50
Part B
In your own words state why markup is added to the price of a good/product or service.
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Good/product
or service
A
B
C
D
E
F
Product cost
$12
$18
$55
$73
$127
$175
Markup
percent
40%
50%
45%
45%
60%
40%
Markup
amount
$4.80
$9
$24.75
$
?
$
?
$
?
Summer 2010
Selling price
$
?
$
?
$
?
$105.85
$203.20
$245
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Direct
Examples:
Examples:
Summer 2010
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Summer 2010
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Mass
Summer 2010
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Summer 2010
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