The Clothing Hub sells jackets. Currently, it sells 20,000 jackets annually at an average price of $100 each. The company is considering adding a lower-priced line of jackets that sell for $70 each. The firm estimates it can sell 8,000 of the lower-priced jackets, but will sell 3,000 less of the higher-priced jackets by doing so. What is the amount of the sales that should be used when evaluating the addition of the lower-priced jackets?
The Clothing Hub sells jackets. Currently, it sells 20,000 jackets annually at an average price of $100 each. The company is considering adding a lower-priced line of jackets that sell for $70 each. The firm estimates it can sell 8,000 of the lower-priced jackets, but will sell 3,000 less of the higher-priced jackets by doing so. What is the amount of the sales that should be used when evaluating the addition of the lower-priced jackets?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:The Clothing Hub sells jackets. Currently, it sells 20,000 jackets annually
at an average price of $100 each. The company is considering adding a
lower-priced line of jackets that sell for $70 each. The firm estimates it
can sell 8,000 of the lower-priced jackets, but will sell 3,000 less of the
higher-priced jackets by doing so.
What is the amount of the sales that should be used when evaluating the
addition of the lower-priced jackets?
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