Ask Question
BusinessBusiness
14 January, 21:39

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?

+4
Answers (1)
  1. 14 January, 21:42
    0
    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.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “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 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Which statement about deposits are true? Check all that apply A. Deposits increase the checking account balance B. A deposit is money that is subtracted from a bank account C.
Answers (2)
A company spends $50,000 this year in research and development for a new drug to cure liver damage. By the end of the year, management feels confident that the new drug will gain FDA approval and lead to higher future sales.
Answers (1)
Problem PageQuestion Charmaine's Coffee Shop makes a blend that is a mixture of two types of coffee. Type A coffee costs Charmaine $5.80 per pound, and type B coffee costs $4.15 per pound.
Answers (1)
Bristol, INC. paid $800 for a 4-month insurance policy on August 1 of the current year. On August 31, Bristol, Inc. made an adjusting entry to account for the insurance that expired during the month of August.
Answers (1)
A company under IFRS standards decides to include interest paid in the Financing Section of their Statement of Cash Flows.
Answers (1)
New Questions in Business
The pricing function is an integral part of the companies :
Answers (1)
A company calculates the value of inventory by using the lower-of-market valuation method. which value should the company report for the inventory item for the period?
Answers (1)
To test an herbal treatment for acid reflux disease, 100 volunteers who suffered from mild indigestion were randomly divided into two groups. Each person was given a month's supply of tea bags.
Answers (1)
A facility management pro forma cash flow statement has beginning accounts receivable and payable balances of ¥18,000,000 (Japanese Yen) and ¥20,000,000.
Answers (1)
Which of the following statements about the consumers' responses to rising gasoline prices is correct? a. Because gasoline is a necessity, consumers do not decrease their quantity demanded in either the short run or the long run. b.
Answers (1)
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.
Sign Up Forgot Password?