Which of the following is a component of carrying cost?
a. Cost of capital.
b. Cost of storage.
c. Cost of obsolescence, deterioration, and loss.
d. All of the above.
e. None of the above.
Question 2
The difference between single-unit and multi-unit franchises is:
a. Only franchisees operating multi-unit franchisees can own more than a single franchise..
b. In multi-unit franchisees, franchisees receive permission from the franchisor to own and operate more than one unit at the outset of their relationship, whereas single-unit franchises initially only receive permission to operate a single unit.
c. Multi-unit franchises require the franchisor to provide greater operational assistance to their franchisees than do they do for single-unit franchises.
d. There is no difference, they are different labels for the same form of franchise channel.
e. None of the above.
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Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.