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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 15 racing bikes per week at a retail price of $659.99. Recently, you put the bikes the sale price, 18 bikes were sold during the one week sale. (a) What was your markdown percent on the bikes? (Round your answer to one decimal place.) % (b) What is the percent increase in number of bikes sold during the sale? % (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 we $ more revenue

You are the manager of World Wide Athlete, a chain of six sporting goods shops in your area. The shops sell 15 racing bikes per week at a retail price of $659.99. Recently, you put the bikes the sale price, 18 bikes were sold during the one week sale. (a) What was your markdown percent on the bikes? (Round your answer to one decimal place.) % (b) What is the percent increase in number of bikes sold during the sale? % (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 we $ more revenue

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 15 racing bikes per week at a retail price of $659.99. Recently, you put the bikes on sale at $599.99. At the sale price, 18 bikes were sold during the one week sale. (a) What was your markdown percent on the bikes? (Round your answer to one decimal place.) % (b) What is the percent increase in number of bikes sold during the sale? % (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.) $ more revenue (d) As manager of World Wide Athlete, would you recommend this permanent price reduction? Explain. (Just consider revenue, ignore cost.) O Yes, permanent markdown increases revenue significantly. O No, permanent markdown decreases revenue significantly. O No, permanent markdown does not change revenue. Submit Answer
Transcribed Image Text:You are the manager of World Wide Athlete, a chain of six sporting goods shops in your area. The shops sell 15 racing bikes per week at a retail price of $659.99. Recently, you put the bikes on sale at $599.99. At the sale price, 18 bikes were sold during the one week sale. (a) What was your markdown percent on the bikes? (Round your answer to one decimal place.) % (b) What is the percent increase in number of bikes sold during the sale? % (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.) $ more revenue (d) As manager of World Wide Athlete, would you recommend this permanent price reduction? Explain. (Just consider revenue, ignore cost.) O Yes, permanent markdown increases revenue significantly. O No, permanent markdown decreases revenue significantly. O No, permanent markdown does not change revenue. Submit Answer
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