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18 July, 12:48

You estimate a selling price of about $335 for the Carnaby Street mini-dress and $285 for the rock star ensemble. Profit for the mini-dress is 43 percent and 36 percent for the ensemble. To decide between these two choices, what would be the most useful thing to calculate?

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  1. 18 July, 14:53
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    Number of each dress that can be sold.

    Explanation:

    Here, selling price and profit margin of both products, mini dress and ensemble are given. At the outset, it may seem that mini - dress is a profitable venture than ensemble as it is sold a higher price and profit margin. However, suppose 100 units of mini dress could be sold earning a profit of $14,405 (335*100*0.43).

    If 200 units of ensemble could be sold, it would earn the seller a profit of $20,520 (285*200*0.36).

    So in order to make a decision, the seller should estimate the number of each of the product to be sold such that profit earned from each product is equal.
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Home » Business » You estimate a selling price of about $335 for the Carnaby Street mini-dress and $285 for the rock star ensemble. Profit for the mini-dress is 43 percent and 36 percent for the ensemble.
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