ou 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 $649.99. Recently, you put the bikes on sale at $599.99. At the sale price, 13 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.) ____Yes, permanent markdown increases revenue significantly. ____No, permanent markdown decreases revenue significantly. ____No, permanent markdown does not change revenue.
ou 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 $649.99. Recently, you put the bikes on sale at $599.99. At the sale price, 13 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.) ____Yes, permanent markdown increases revenue significantly. ____No, permanent markdown decreases revenue significantly. ____No, permanent markdown does not change revenue.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 39P
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Question
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 $649.99. Recently, you put the bikes on sale at $599.99. At the sale price, 13 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.)
____Yes, permanent markdown increases revenue significantly.
____No, permanent markdown decreases revenue significantly.
____No, permanent markdown does not change revenue.
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