You are the manager of World Wide Athlete, a chain of six sporting goods shops in your area. The shops sell 12 racing bikes per week at a retail price of $679.99. Recently, you put the bikes on sale at $599.99. At the sale price, 15 bikes were sold during the one-week sale.
1. What was your markdown percent on the bikes?
2. What is the percent increase in number of bikes sold during the sale?
3. How much more revenue would be earned in six months by permanently selling the bikes at the lower price rather than having a one-week sale each month? (6 sale weeks in 26 weeks)
11.3
1. To calculate the markdown percent on the bikes, we need to find the difference between the original price and the sale price, and then divide that by the original price.
Original price of the bike = $679.99
Sale price of the bike = $599.99
Markdown = Original price - Sale price = $679.99 - $599.99 = $80
Markdown percent = (Markdown / Original price) * 100 = (80 / 679.99) * 100 ≈ 11.77%
Therefore, the markdown percent on the bikes is approximately 11.77%.
2. To calculate the percent increase in the number of bikes sold during the sale, we need to find the difference between the number of bikes sold at the sale price and the number of bikes sold at the retail price, and then divide that by the number of bikes sold at the retail price.
Number of bikes sold at retail price = 12
Number of bikes sold at sale price = 15
Increase in the number of bikes sold = Number of bikes sold at sale price - Number of bikes sold at retail price = 15 - 12 = 3
Percent increase = (Increase in number of bikes sold / Number of bikes sold at retail price) * 100 = (3 / 12) * 100 = 25%
Therefore, the percent increase in the number of bikes sold during the sale is 25%.
3. To calculate the additional revenue earned by permanently selling the bikes at the lower price for six months instead of having a one-week sale every month, we need to compare the revenue earned from each scenario.
Revenue from the one-week sale:
Revenue per bike at the sale price = Sale price of the bike = $599.99
Number of bikes sold during the sale = 15 bikes
Total revenue from the one-week sale = Revenue per bike * Number of bikes sold = $599.99 * 15 = $8,999.85
Revenue from selling at the lower price for six months:
Number of sale weeks in six months = 6 (as given)
Number of bikes sold each week during six months = Number of bikes sold during the sale = 15 bikes (as given)
Total number of bikes sold during six months = Number of bikes sold each week * Number of sale weeks = 15 bikes * 6 = 90 bikes
Revenue per bike at the lower price = Lower sale price = $599.99
Total revenue from selling at the lower price for six months = Revenue per bike * Number of bikes sold = $599.99 * 90 = $53,999.10
Additional revenue earned = Total revenue from selling at the lower price for six months - Total revenue from the one-week sale = $53,999.10 - $8,999.85 = $44999.25
Therefore, the additional revenue that would be earned in six months by permanently selling the bikes at the lower price rather than having a one-week sale each month is $44,999.25.