I need the below assignment by 31 Jan 16 by 2 pm eastern time.
8.3 The Artists Palette
The Artists Palette sells high-end art supplies to the art students at three regional art and design schools in Philadelphia, Washington, D.C., and Baltimore. It carries paints, brushes, drawing pads, frames, charcoal, pastels, and other supplies used in a variety of artistic media. Because its clientele is very discriminating, The Artists Palette tends to carry only the top lines in its inventory and it is known for having the best selection on hand. It is rare that an item is out of stock. Artists can visit the store, purchase from The Artists Palette catalog, or from the secure web site.
9-1 Acupuncture, Tea, and Rice-Filled Heating Pads
Karen is an acupuncturist with a busy practice. In aIDition to acupuncture services, Karen sells teas, herbal supplements, and rice-filled heating pads. Because Karens primary income is from acupuncture, she feels that she is providing the other items simply to fill a need and not as an important source of profits. As a matter of fact, the rice-filled heating pads are made by a patient who receives acupuncture for them instead of paying cash. The rice-filled pads cost Karen $5.00, $8.00, and $12.00, respectively, for small, medium, and large sizes. The ginger tea, relaxing tea, cold & flu tea, and detox tea cost her $2.59 per box plus $5.00 shipping and handling for 24 boxes. Karen uses a cost plus markup method, whereby she aIDs the same set amount to each box of tea. She figures that each box costs $2.59 plus $0.21 shipping and handling, which totals $2.80, then she aIDs $0.70 profit to each box and sells it for $3.50. Do you think this is a good pricing strategy? How would it compare to marking up by a percentage of the cost?
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