• Kohl’s is introducing a new brand of bathing suits for $70. The prime selling season is 50 days during the late spring and early summer; after that, the store has a clearance sale around July 4 and marks down the price by 70% (to $21.00), typically selling any remaining inventory at the clearance price. Merchandise buyers have purchased 1,000 units and allocated them to the stores prior to the selling season. After a few weeks, the stores reported average sales of 7 units/day, and past experience suggests that this constant level of sales will continue over the remainder of the selling season. The local store manager has developed an Excel model in the HW5Data spreadsheet under the tab, Kohl's. Use the appropriate Excel What-if function to produce the following information for the manager:
  1. Clearance revenue varying clearance markdown from 50% to 90% in increments of 5%. Include your analysis within the same tab in a clearly identified area.
  3. Retail price necessary to achieve a total revenue of $60,000. Include your analysis in a separate tab labeled Kohl's.

Data
Retail price	70.00
Inventory	1000
Selling season (days)	50
Days at full retail	40
Intermediate markdown	40%
Clearance markdown	70%
Demand function
a	91
b	1.2
Model
Full Retail Sales
Retail price	$70.00
Daily sales	7.00
Days at retail price	40
Units sold at retail	280
	Retail revenue	19,600.00
Discount Sales
Discount	40%
Discount price	$42.00
Daily sales	40.60
Unit sold	406
	Discount revenue	$17,052.00
Clearance Sales
Clearance price	$21.00
Units sold at clearance	314
	Clearance revenue	$6,594.00
	Total revenue	$43,246.00

1.