Calculate the total number of units sold during the full retail sales period. D.
ID: 382194 • Letter: C
Question
Calculate the total number of units sold during the full retail sales period.
D. 520
Calculate the total revenue for the new line of sweaters.
A. 33 B. 187 C. 360D. 520
Calculate the total revenue for the new line of sweaters.
A. $ 23,400.54 B. $ 43,231.09 C. $ 48,871.88 D. $ 59,426.25 Wowza Accessories, a clothing retailer, is planning to introduce a new line of sweaters as part of the winter collection for $65 with an inventory of 1500. The main selling season is 60 days between November and December. The store then sells the remaining units in a clearance sale at 65 percent discount. Out of the 60 main retail days, Wowza sells the sweaters at full retail price for only 45 days while giving a discount of 25 percent for the remaining 15 days. The demand functions (a) and (b) are given as 79.5 and 1.1 respectively Marked Down Pricing Model for Wowza Accessories' new sweater Data Retail Prices Inventory Selling Season (days) Days at Full Retail Intermediate Markdown $65 1500 60 45 25 percent 65 percent Clearance Markdown Demand Function 79.5Explanation / Answer
Calculate the total number of units sold during the full retail sales period.
Demand Function: Q = a - b.P = 79.5 - 1.1P
At full retail price period, P = $65
So, Q (per day) = 79.5 - 1.1 x 65 = 8
The period is of 45 days, so, total sales = 8 x 45 = 360
Calculate the total revenue for the new line of sweaters
Revenue of the full price period = 360 x $65 = $23,400
At discounted price period, P = $65 x (100% - 25%) = $48.75
So, Q (per day) = 79.5 - 1.1 x 48.75 = 25.875
The period is of 15 days, so, total sales = 25.875 x 15 = 388.125
Revenue of the discouted price period = 388.125 x $48.75 = $18,921.09
Total revenue = $18,921.09 + $23,400 = $ 43,231.09
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