McDonald wants to increase its total revenue. One strategy is to offer a 10% discount on every customer that they sell. MacDonald knows that their customers can be divided into two distinct groups according to their likely responses to the discount. The table shows how the two groups respond to the discount.Discount Group A: family (sales per week)Group B: school children (sales per week)Volume of sales before the 10% discount1.55 million 1.50 millionVolume of sales after the 10% discount1.65 million 1.70 millionIf McDonald wants to increase its total revenue, should discounts be offered to group A or to group B? Explain

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Answered: McDonald wants to increase its total…

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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McDonald wants to increase its total revenue. One strategy is to offer a 10% discount on every customer that they sell. MacDonald knows that their customers can be divided into two distinct groups according to their likely responses to the discount. The table shows how the two groups respond to the discount.

Discount	Group A: family (sales per week)	Group B: school children (sales per week)
Volume of sales before the 10% discount	1.55 million	1.50 million
Volume of sales after the 10% discount	1.65 million	1.70 million