Eco Polo Essay

1) Identify the change in quantity gross (the permissivenessal gross) from the fourth tog per solar sidereal twenty-four hour period. What terms reduction was necessary to transport four rather than three apparels? Marginal revenue for the fourth dress is $41 even though it determine is $44. Price reduction is $1 which is from $45 to $44. 2) What is the change in total revenue from dark the worth to dish out seven rather than six shirts in each people of colour each day? The change in total revenue from merchandising seventh shirts rather than sixth shirts is $28.The marginal revenue of the seventh shirt is $28. The seventh shirt brings in $38.31, which is the selling price. 3) Break out the components of the $28 marginal revenue from the seventh unit sale at $38.31- that is, how a good deal revenue is lost per unit sale relative to the price that would lean six shirts per color per day? Selling the seventh shirt per day at a price of $38.31 required reducing the pri ce from $40 to $38.31. Total revenue increased from $240 to $268, a $28 increase. If the friendship charged $28 for the shirt, the last shirt yielded exactly the same revenue as its cost her. 4) Calculate the total revenue for selling 10-16 shirts per day. Calculate the cut prices necessary to achieve each of these sales rates.The highlighted part of the table shows the prices and revenue for 10-18 shirts. 5) What number of shirts unit sales most pleases a sales work with sales commission-based bonuses? Sales personnel is targeted on receiving the commission from the product they sell ( a given portion of sales revenue ). So, they would prefer the $24.07 price, where total revenue is $361 selling 15 shirts a day. 6) Would you recommend lowering price to the level required to generate 15 unit sales per day? Why or why not? The company should not lowering the price to generate 15 sales per day. By lowering the rpice, the company only face a dismission of $59 ( $361-$420 ).This i s absolutely not a profit maximization because MCMR. 7) What is the operating(a) profit or loss on the fifteenth shirt sold per color per day? What active the twelfth? The tenth? The marginal operating profit for the fifteenth shirt is $-28. For the twelfth shirt, the marginal operating profit is is $-18. For the tenth shirt, the marginal operating profit is $-12. 8) How many shirts do you recommend selling per color per day? What then is your recommended dollar markup and markup percentage? What dollar margin and percentage margin is that? Optimal (profit maximizing) is where MR=MC, which is at 7 shirt at theselling price of $38.31 per shirt. The optimal dollar markup is $10.31, the optimal percentage markup is 36.83%, and the dollar margin and percentage margin are $10.31 and 26.91% respectively.