Question

you are finding the amount of what you would charge a customer for the following arrangement:

price a vase arrangement of 15 mixed flowers and 10 stems of foliage. use the following wholesale prices:

softgoods-
a. 15 pixie carnations for $1.50 each
b. 5 hydrangeas for $4.00 each
c. 5 baby’s breath stems for $1.00 each
d. $.50 per stem for leather leaf, use 15 stems

hardgoods -
e. 25.00 vase
f. .25 floral preservative
g. 1.00 foam
h. .50 tape
i. 1.00 wire

labor -
j. design took 30 minutes to make. your hourly wage is 25.00

how much will the arrangements cost using the following methods:

1. ration mark - up plus labor cost

you will need to use the ratios for mark - ups:
hardgoods is 2:1 ratio
softgood is 3:1 ratio
____total of all goods + ____labor cost = retail

1. percent mark - up

you will get the cost for the materials you use to create arrangements and then multiply by 20%.
cost____x.20 = ____
____cost + ____% mark - up = retail

Explanation:

Step1: Calculate total softgoods cost

First, correct and sum softgoods costs:
a. $15 \times 1.50 = 22.50$
b. $5 \times 4.00 = 20.00$
c. $5 \times 1.00 = 5.00$
d. $15 \times 0.50 = 7.50$
Total softgoods: $22.50 + 20.00 + 5.00 + 7.50 = 55.00$

Step2: Calculate total hardgoods cost

Sum hardgoods costs:
e. $25.00$, f. $0.25$, g. $1.00$, h. $0.50$, i. $1.00$
Total hardgoods: $25.00 + 0.25 + 1.00 + 0.50 + 1.00 = 27.75$

Step3: Calculate labor cost

30 minutes = 0.5 hours:
$\text{Labor} = 0.5 \times 25.00 = 12.50$

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For Method 1: Ratio Mark-up plus labor cost

Step4: Apply softgoods mark-up (3:1)

Marked-up softgoods: $55.00 \times 3 = 165.00$

Step5: Apply hardgoods mark-up (2:1)

Marked-up hardgoods: $27.75 \times 2 = 55.50$

Step6: Sum marked goods + labor

Total retail: $165.00 + 55.50 + 12.50$

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For Method 2: Percent Mark-up

Step7: Calculate total material cost

Total materials: $55.00 + 27.75 = 82.75$

Step8: Calculate 20% mark-up amount

Mark-up: $82.75 \times 0.20 = 16.55$

Step9: Sum materials + mark-up + labor

Total retail: $82.75 + 16.55 + 12.50$

Answer:

1. Ratio Mark-up plus labor cost:

Total marked goods = $165.00 + 55.50 = 220.50$
Retail price = $220.50 + 12.50 = 233.00$

1. Percent Mark-up:

Material cost = $82.75$
Mark-up amount = $16.55$
Retail price = $82.75 + 16.55 + 12.50 = 111.80$