rcrombie & Fitch, once the favorite of loyal teens, is considering lowering prices on all items it sells in an effort to win them back after several years of sales declines. A&F's total sales were $3 billion last year, but they have been declining in the of a weak economy and an intensively competitive retail environment. Price reductions are often effective in increasing sales, but marketers need to analyze how much sales must go up before a price reduction pays off and increases revenue ugh to make the it worth doing. Assuming A&F's gross profit margin is 45 percent and cost of goods sold represents the only variable cost, by how much must sales increase to maintain the same gross profit margin in terms of absolute dollars if lowers prices by 5 percent? current gross profit is $ 1.35 billion. (Round to two decimal places.) he initial price equal to $1.00. Then the new price is 5 (Round to the nearest cent)

rcrombie & Fitch, once the favorite of loyal teens, is considering lowering prices on all items it sells in an effort to win them back after several years of sales declines. A&F's total sales were $3 billion last year, but they have been declining in the of a weak economy and an intensively competitive retail environment. Price reductions are often effective in increasing sales, but marketers need to analyze how much sales must go up before a price reduction pays off and increases revenue ugh to make the it worth doing. Assuming A&F's gross profit margin is 45 percent and cost of goods sold represents the only variable cost, by how much must sales increase to maintain the same gross profit margin in terms of absolute dollars if lowers prices by 5 percent? current gross profit is $ 1.35 billion. (Round to two decimal places.) he initial price equal to $1.00. Then the new price is 5 (Round to the nearest cent)

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter7: Consumer Choice And Elasticity

Section: Chapter Questions

Problem 5CQ: Estimates presented in Exhibit 5 show that Android users have a higher price elasticity of demand...

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