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(c) How much more revenue (in $) would be earned in 6 months by permanently selling the bikes at the lower price rather than having a 1 week sale each month? (6 sale weeks in 26 weeks.) $ 10399.48 x more revenue

(c) How much more revenue (in $) would be earned in 6 months by permanently selling the bikes at the lower price rather than having a 1 week sale each month? (6 sale weeks in 26 weeks.) $ 10399.48 x more revenue

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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You are the manager of World Wide Athlete, a chain of six sporting goods shops in your area. The shops sell 10 racing bikes per week at a retail price of $679.99. Recently, you put the bikes on sale at $599.99. At the sale price, 12 bikes were sold during the one week sale. (a) What was your markdown percent on the bikes? (Round your answer to one decimal place.) 11.78 % (b) What is the percent increase in number of bikes sold during the sale? 20 % (c) How much more revenue (in $) would be earned in 6 months by permanently selling the bikes at the lower price rather than having a 1 week sale each month? (6 sale weeks in 26 weeks.) $ 10399.48 x more revenue aAs manager of World Wide Athlete, would you recommend this permanent price reduction? Explain. (Just consider revenue, ignore cost.) Yes, permanent markdown increases revenue significantly. O No, permanent markdown decreases revenue significantly. O No, permanent markdown does not change revenue.
Transcribed Image Text:You are the manager of World Wide Athlete, a chain of six sporting goods shops in your area. The shops sell 10 racing bikes per week at a retail price of $679.99. Recently, you put the bikes on sale at $599.99. At the sale price, 12 bikes were sold during the one week sale. (a) What was your markdown percent on the bikes? (Round your answer to one decimal place.) 11.78 % (b) What is the percent increase in number of bikes sold during the sale? 20 % (c) How much more revenue (in $) would be earned in 6 months by permanently selling the bikes at the lower price rather than having a 1 week sale each month? (6 sale weeks in 26 weeks.) $ 10399.48 x more revenue aAs manager of World Wide Athlete, would you recommend this permanent price reduction? Explain. (Just consider revenue, ignore cost.) Yes, permanent markdown increases revenue significantly. O No, permanent markdown decreases revenue significantly. O No, permanent markdown does not change revenue.
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