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10 May 2025, 09:09
Kudos
Bookmarks
Happy to give my two cents.
We need to find average number of classic pieces per person to achieve the wanted profit.
Assume we only have 1 customer (it doesn't matter because the number of customers stays unchanged)
Average number of classic pieces = Total expected profit / profit for each classic piece
1. First, we need to find the total expected profit:
Total expected profit = 2*current profit
Right now, profit is 50% of cost, hence it's 1/3 of the selling price (Cost + Profit = Selling price). Therefore, current total profit = current total selling price /3 = 850/3.
The store wants to double its profit --> Total Expected profit = 850*2/3 (1)
2. Now, we need to find the profit for each classic piece
Selling price of 1 classic = 5*selling price of 1 fast-fashion = 5* 850/65 = 850/13
We also know that expected markup rate = 2*current markup rate = 2*50% = 100% of cost
So for one item, selling price will be twice the profit (selling price = cost + profit, and we know cost = profit)
--> Per item profit for classic = 850/13 * 1/2 = 850/26 (2)
(1)/(2) will give us the answer 17.43, rounded to 17.
We need to find average number of classic pieces per person to achieve the wanted profit.
Assume we only have 1 customer (it doesn't matter because the number of customers stays unchanged)
Average number of classic pieces = Total expected profit / profit for each classic piece
1. First, we need to find the total expected profit:
Total expected profit = 2*current profit
Right now, profit is 50% of cost, hence it's 1/3 of the selling price (Cost + Profit = Selling price). Therefore, current total profit = current total selling price /3 = 850/3.
The store wants to double its profit --> Total Expected profit = 850*2/3 (1)
2. Now, we need to find the profit for each classic piece
Selling price of 1 classic = 5*selling price of 1 fast-fashion = 5* 850/65 = 850/13
We also know that expected markup rate = 2*current markup rate = 2*50% = 100% of cost
So for one item, selling price will be twice the profit (selling price = cost + profit, and we know cost = profit)
--> Per item profit for classic = 850/13 * 1/2 = 850/26 (2)
(1)/(2) will give us the answer 17.43, rounded to 17.
09 Jul 2025, 06:12
Kudos
Bookmarks
Got the correct answer but it took really long to understand and solve. Dont know if that much effort to get answer correct is worth. Might miss some questions towards the end due to lack of time.
parkhydel
