MKT 300-Pricing Value Problems 6. Tinker Bell, the owner of Simply Pixie Dust, also purchases freshly made scones every morning from a local bakery and is trying to achieve a target markup of 250 % on the baked items. She pays $6.00 per dozen for the scones. How much should she charge for one scone in order to realize a 250% targeted markup? 7. Cinderella is the owner of The Spot, a cleaning business specializing in singing brooms. She is trying to achieve a target markup of 200% and her costs associated with programming a singing broom are $1.25 per use. How much should she charge for a singing broom cleanup in order to realize a 200% targeted markup? 8. Aladdin is the owner of a carpet business and uses the gross profit approach for pricing all of his items. His best-selling product, a magic carpet ride, costs $2.50 and his target margin is 35%. Calculate the price of one ride on a magic carpet ride to the nearest whole dollar. 9. Captain Hook knits sweaters for small dogs and sells them at craft shows. People love watching him knit with his hook. He would like to achieve an 80% target profit margin and each sweater costs $2 in variable costs to make. How much should Captain Hook charge for his hand-knitted creations? 10. Chip and Dale run a lawncare business and trying to achieve a gross profit margin of 65% on all of their services. The acorn burying service, which is the most popular option, costs $1.25 to produce. How much should Chip and Dale charge their customers for an acorn burying service?
