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 $639.99. Recently, you put the bikes on sale at $599.99. At the sale price, 12 bikes were sold during the one week sale. What was your markdown percent on the bikes? (Round your answer to one decimal place.) % What is the percent increase in number of bikes sold during the sale? % 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.) $ more revenue
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 $639.99. Recently, you put the bikes on sale at $599.99. At the sale price, 12 bikes were sold during the one week sale. What was your markdown percent on the bikes? (Round your answer to one decimal place.) % What is the percent increase in number of bikes sold during the sale? % 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.) $ more revenue
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 $639.99. Recently, you put the bikes on sale at $599.99. At the sale price, 12 bikes were sold during the one week sale.
What was your markdown percent on the bikes? (Round your answer to one decimal place.)
%
What is the percent increase in number of bikes sold during the sale?
%
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.)
$ more revenue
As manager of World Wide Athlete, would you recommend this permanent price reduction? Explain. (Just consider revenue, ignore cost.)
Yes, permanent markdown increases revenue significantly.
No, permanent markdown decreases revenue significantly.
No, permanent markdown does not change revenue
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Step 1: State the given information.
VIEWStep 2: Calculate the markdown percent on the bikes.
VIEWStep 3: Calculate the percent increase in number of bikes sold during the sale
VIEWStep 4: Calculate the additional revenue by permanently selling the bikes at the lower price for 6 months
VIEWStep 5: Recommend on this permanent price reduction
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