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n the lecture, based on the beginning balance sheet of our shoe company, we examined the effects on revenue, profits and ROE of a 10%
n the lecture, based on the beginning balance sheet of our shoe company, we examined the effects on revenue, profits and ROE of a 10% increase in quantity of shoes sold. Now analyze the effects of a 10% increase in price per pair sold (the number of pairs sold is unchanged at 80).
Which is better an increase in sales or the same percentage increase in price? Why?
info for 10% increase in quantity of shoes
change in rev: 10% increase
change in profit: 26.76%
ROE:19%
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