Web Application Chapter 7 page 256

New postage rates went in effect on January 10, 1999. The new rates affected first-class, express mail, priority mail, and a number of other types of mailings. For your information, the U. S. Postal Service's Web site, www.stampsonline.com, has a complete listing of rate changes. To get to stampsonline, start at www.usps.gov and click on the Store button; then click on stampsonline. By using the skills and terms you covered in Chapter 7, Objective 1, answer the following questions:

1. The U.S. postal rate in 1971 was $.08; as of January 1999, the rate is $.33. Explain why the U.S. Postal Service changes its rates. In your answer, refer to terms used in selling, such as overhead, operating expenses, and net profit.

2. Did you know that vendors can markup the price of stamps when they resell them? What would be the reason for this? Use the Frequently Asked Questions section of the www.usps.gov/consumer/ Web site as a reference.

3. Using the basic formula for markup, C + M = S, set up the following scenario. A vendor buys 250 stamps for $82.50. If he sells the stamps for $95, what is the amount of the markup?

4. For fun, look at www.usps.gov/consumer/, click on Calculate, and use the Domestic Rate Calculator to figure different rates.

© Copyright 2000 Addison Wesley Longman, Inc.