Question
Gaels Glass sells through three channels: phone, online, and store. These channels generate the following margins: 50%, 40%, and 30%, respectively. When Gaels wife asks
Gaels Glass sells through three channels: phone, online, and store. These channels generate the following margins: 50%, 40%, and 30%, respectively. When Gaels wife asks what his average margin is, he initially calculates a simple margin and says its 40%. Gaels wife investigates further, however, and learns that her husband answered too quickly. Gaels company sells a total of 10 units. It sells 1 unit by phone at a 50% margin, 4 units online at a 40% margin, and 5 units in the store at a 30% margin. Calculate the companys average channel margin in percentage terms.
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