A buyer for BestBuy is negotiating with a manufacturer to purchase an order of edge-lit 58 inch 3D LED televisions. She negotiates a price of $1,230. BestBuy marks up this category of television by 32% of cost. BestBuy has determined that the price point for this TV will be $1,755. Assume that the buyer signs the contract and that BestBuy sells the TV for $1,755. Based on the negotiated price, BestBuy’s required markup and the customer price point, by how much will BestBuy be exceeding (+) or falling short (-) of it’s desired markup? Round your answer to the nearest dollar. Question 2 A buyer for BestBuy is negotiating with a manufacturer to purchase an order of edge-lit 58 inch 3D LED televisions. She negotiates a price of $1,255. BestBuy marks up this category of television by 25% of selling price. BestBuy has determined that the price point for this TV will be $1,700. Based on the negotiated price, BestBuy’s required markup and the customer price point, by how much will BestBuy be exceeding (+) or falling short (-) of it’s desired markup? Round your answer to the nearest dollar. In answering this question, calculate the selling price that would represent a 25% markup on that selling price, given the negotiated purchase price. Then compare that price to BestBuy’s price point.
