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Abercrombie & Fitch, onon the favorite of loyalton is considering lowering prices on all forms itsells in an effort to win them back we several

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Abercrombie & Fitch, onon the favorite of loyalton is considering lowering prices on all forms itsells in an effort to win them back we several years of sales decis ALP's were 3 billion last year, but they have been declining in the face of a weak economy and an intensively competitive retail environment Prior reductions are often efective in increasing sales, but marketers need to analyze how much sales must go up before a price reduction pays off and intervenue enough to make the worth doing Asuming Art margin is 65 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 absoluta dolari lower prices by 5 percent? The current gross profit is stilion, (Round to two decimal places)

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