If a home goods retailer pays $32.50 for the vacuum cleaner shown here, answer the following questions. (Round dollars to the nearest cent and percents to the nearest tenth of a percent.) 12-AMP...

Extracted text: If a home goods retailer pays $32.50 for the vacuum cleaner shown here, answer the following questions. (Round dollars to the nearest cent and percents to the nearest tenth of a percent.) 12-AMP POWERVAC PLUS $899 • Microfiltration • On-board tools 1-yr. Product Replacement Policy, $7.99 (a) What is the percent markup based on selling price? 63.7 % (b) If the retailer pays $1.40 to the insurance company for each product replacement policy sold, what is the percent markup based on selling price of the vacuum cleaner and policy combination? % (c) If 6,000 vacuum cleaners are sold in a season and 40% are sold with the insurance policy, how many additional "markup dollars," the gross margin, were made by offering the policy? $ |(d) As a housewares buyer for the retailer, what is your opinion of such insurance policies, considering their effect on the "profit picture" of the department? How can you sell more policies?