Question: Use the Markdown Pricing Model spreadsheet model and a two-way data table to find the total revenue if days at full retail vary from 20
Use the Markdown Pricing Model spreadsheet model and a two-way data table to find the total revenue if days at full retail vary from 20 to 40 in increments of 5 and the intermediate markdown varies from 25% to 60% in increments of 5%.
| Markdown Pricing Model | ||
| Data | ||
| Retail Price | $70.00 | |
| Inventory | 1000 | |
| Selling Season (days) | 50 | |
| Days at full retail | 40 | |
| Intermediate markdown | 30% | |
| Clearance markdown | 70% | |
| Sales Data | ||
| Price(X) | Average Daily Sales (Y) | |
| $70 | 7 | |
| $49 | 32.2 | |
| Demand function parameters | ||
| Intercept | 91 | |
| Slope | -1.2 | |
| Model | ||
| Full Retail Sales | ||
| Retail price | $70.00 | |
| Daily sales | 7 | |
| Days at retail price | 40 | |
| Units sold at retail | 280 | |
| Retail revenue | $19,600.00 | |
| Discount Sales | ||
| Discount | 30% | |
| Discount price | $49.00 | |
| Daily sales | 32.2 | |
| Unit sold | 322 | |
| Discount revenue | $15,778.00 | |
| Clearance Sales | ||
| Clearance price | 21 | |
| Units sold at clearance | 398 | |
| Clearance revenue | $8,358.00 | |
| Total revenue | $43,736.00 |
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