Question
KFC wants to increase its total revenue. One strategy is to offer a 10% discount on every customer that KFC sells. KFC knows that their
KFC wants to increase its total revenue. One strategy is to offer a 10% discount on every customer that KFC sells. KFC knows that their customers can be divided into two distinct groups according to their likely responses to the discount. The table shows how the two groups respond to the discount.
Discount
Group A: family (sales per week)
Group B: school children (sales per week)
Volume of sales before the 10% discount
1.55 million
1.50 million
Volume of sales after the 10% discount
1.65 million
1.70 million
A. If KFC wants to increase its total revenue, should discounts be offered to group A or to group B? Explain
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