QRB/501 Week Three Case Study; 9-1 Acupuncture, Tea, and Rice-Filled Heating Pads

Karen is an acupuncturist after a while a engaged exercise. In restoration to acupuncture services, Karen retails teas, herbal supplements, and rice-filled heating pads. Because Karen’s chief allowance is from acupuncture, she feels that she is providing the other items simply to satisfy a insufficiency and not as an considerable fount of produce. As a subject of certainty, the rice-filled heating pads are made by a unrepining who receives acupuncture for them instead of paying specie. The rice-filled pads require Karen $5.00, $8.00, and $12.00, respectively, for inferior, average, and big sizes. The ginger tea, relaxing tea, frigid & flu tea, and detox tea require her $2.59 per box plus $5.00 shipping and handling for 24 boxes. Karen uses a require plus markup regularity, whereby she adds the similar set sum to each box of tea. She figures that each box requires $2.59 plus $0.21 shipping and handling, which totals $2.80, then she adds $0.70 use to each box and retails it for $3.50. Do you imagine this is a cheerful pricing policy? How would it collate to marking up by a percent- age of the require?


  1. What is the markup percentage for a box of ginger tea?
  2. If the rice-filled heating pads retail for $7.00, $10.00, and $15.00 for inferior, average, and big, respectively, what is the markup percentage on each one?
  3. Karen wants to collate using the require plus regularity to the percentage markup regularity. If she retails 2 inferior rice pads, 4 average rice pads, 2 big rice pads, and 20 boxes of $3.50 tea in a month, how greatly use does she congregate? What markup percentage based on require would she keep to use to produce the similar sum of use on this month’s sales?
  4. What prices should Karen assault (using the markup percentage) to get the similar sum of use as she did after a while the require plus regularity? Do not comprise shipping.