Ray Tucker, owner of Tucker Grocery, does all of the buying for his company. Recently, Coca-Cola offered Ray a deal on 2 pallets of Coke and Diet Coke for Homecoming weekend. Each pallet contains 50 24-pack cases (½ Coke, ½ Diet Coke.) Normally the cost per case is $4.00 and the retail is $5.00. Coca-Cola is now offering Ray a cost per case of $3.85.
Part 1. If Ray would like to maintain the same initial markup % (as he had at the $4.00 cost) on the cases of Coke and Diet Coke, what price should he now sell the cases of Coke and Diet Coke for?
Part 2. If Ray decided that he wanted to maintain the same "penny profit," would his price for the cases of Coke and Diet Coke be the same as the amount you just calculated?
Part 3. What will Ray's dollar profit be on the cases of Coke and Diet Coke if he sells all the cases at the price you calculated in Part 1?