Asked by Mbambo Siyabonga on Jun 03, 2024
Verified
The Pro Shop at Sunny Lake Golf and Country Club prices its golf club sets to allow for overhead of 33 13\frac{1}{3}31 % of cost and profit of 20% of cost.
a) What is the regular selling price as a percentage of cost?
b) What discount rate can the Pro Shop offer to club members if it will accept half of the normal profit on member purchases?
Golf Club Sets
A collection of golf clubs, typically including a variety of woods, irons, and a putter, used to play golf.
Discount Rate
The discount rate is the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility.
- Ascertain the influence of indirect costs on the pricing strategy and profitability.
- Utilize understanding of cost, selling price, and profit to assess business choices.
- Analyze sales strategies through discounting and its effect on profit.
Verified Answer
ZK
Learning Objectives
- Ascertain the influence of indirect costs on the pricing strategy and profitability.
- Utilize understanding of cost, selling price, and profit to assess business choices.
- Analyze sales strategies through discounting and its effect on profit.