The Coffee Bean & Tea Leaf(CBTL), Business strategy case study
Carter kockac cm_wk3
1. Markup based on cost
using percentages
(Percentages)
Carter_K’ockac
College Math
Week 3
2. Historical Facts
Movie theater popcorn profit margin approaches 98%.
(Taylor, P. 2012)
The mark up is the percentage added to 1 then
multiplied by the wholesale cost to find the retail price
(What Is the Markup Percent for Most Boutiques?)
Mark-ups are higher in more concentrated industries.
(Haskel, J., Martin, C., & Small)
most retail use 50% markup for their merchandise
(Taylor,P. 2012)
3. The concept in Full Sail
careers
Music Business Careers
Retailers then mark up the CD by 30 to 50 percent, and
that's where they make their money.
10 X .50 = 5 10 + 5= $15
Sports Marketing & Media
Item Cost = Price (1.00 – Markup
Percentage)
25 X 1.30 + $32.50
5. References
FULLSAIL LIBRARY
Nooteboom, B. B. (1985). A mark-up model of retail margins. Applied Economics, 17(4), 647.
VENDOR, V. (2008). Your Mark-Ups Are Screw-Ups!. Refrigerated & Frozen Foods Retailer, 6(4), 14.
Kellbaugh, D. (2005). The Number One Killer of Retail Stores. Giftware News, 30(12), 263.
Seifert, D. (2000). On Your Mark. Chain Store Age, 76(10), 72.
BUCHWALD, L. (2013). HUNGRY AT THE HUNGER GAMES?. Scholastic Math, 34(5), 10.
Taylor, P. (2012). A PRICING LESSON FROM POPCORN. Canadian Business, 85(7), 19-20.
Haskel, J., Martin, C., & Small, I. (1995). PRICE, MARGINAL COST AND THE BUSINESS CYCLE. Oxford Bulletin Of Economics &
Statistics, 57(1), 25-41.
WEB
Movie theaters mark up popcorn an average of 1275 Percent! (n.d.). Retrieved May 24, 2014, from
http://www.omgfacts.com/Business/Movie-theaters-mark-up-popcorn-an-averag/53644
What Is the Markup Percent for Most Boutiques? (n.d.). Retrieved from http://smallbusiness.chron.com/markup-percent-boutiques-
35432.html
