Fiberia Accessories, a clothing retailer, is planning to introduce a new line of
ID: 3202946 • Letter: F
Question
Fiberia 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, Fiberia 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.
What is the average daily sale during the full retail sales period?
Fiberia Accessories's new sweater Data Retail Price $65 Inventory 1500 Selling Season (days) 60 Days at Full Retail 45 Intermediate Markdown 25 percent Clearance Markdown 65 percent Demand Function a 79.5 b 1.1
Explanation / Answer
Demand Function = 79.50 + 1.1 X
Here X is no. of days
Full retail sales period
X= 45 days
Demand Q = 79.50 + 1.1 x45
= 129
Discount sales period
Q= 79.50 + 1.1 x 15
= 96 units
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