Assignment:
Q1. Jewelry Store: Amanda is a manager at a local jewelry store. When a customer purchases a diamond engagement ring, Amanda also suggests purchasing a pearl necklace as a gift for the fiancé's Mother. As a courtesy, Amanda discounts the necklace by 35% of the original price. From the cost, the engagement ring has a markup of 100%, and the pearl necklace's markup is 65%. (In your calculations, you will round all values to the nearest cent.)
a.) What would be the store's cost for a ring that Amanda sells after markup for $4,500 and for the necklace sold for $2,500?
b.) If a customer buys the diamond ring and the necklace, what would be the total purchase price?
c.) How much did the customer save by purchasing the ring and the necklace together instead of buying them separately?
Q2. Medical: In 1984, hospital charges averaged at 35% above costs, and hospital revenues were 25% above the hospital gross charges. Since 1984, both ratios have widened steadily, and much of the divergence has accelerated since the year 2000. The charges increased to 43% in 2010 above costs and to 31% for gross charges.
a.) Select a hospital charge for a treatment (emergency room, outpatient, or ailment), and assume a cost.
b.) Assuming the 1984 rate, what would be the hospital charges to the patient?
c.) How much more in dollars will the same patient pay in 2010?
d.) Assume that gross charges totaled $1,250,000 for 1984. What would be the revenues generated? Complete the same analysis using the markups for 2010.
Provide complete and step by step solution for the question and show calculations and use formulas.