Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Phil's Army Surplus calculator business was going great guns -- especially the newest models with exclusive camouflage color schemes. Phil sold the calculators from his

image text in transcribed Phil's Army Surplus calculator business was going great guns -- especially the newest models with exclusive camouflage color schemes. Phil sold the calculators from his own dedicated web site: Philthe-bill.com and had consistent sales of 450 units per week. The calculators sold for $37 earning Phil a margin of 42% percent on sales that originated on his site. One source for some of Phil's sales were clickthroughs from an online department store, BigMuddy.com. Sales originating from BigMuddy had the same retail price, but BigMuddy earned a 18% commission on thoses sales. Sales based on BigMuddy clickthroughs accounted for 10% of total unit sales and somewhat less of dollar sales after commissions were paid. If Phil offers an electronic coupon for 10% off the price of sales through BigMuddy and BigMuddy's dollar margins remain unchanged, what unit increase will be required to increase weekly contribution dollars from BigMuddy sales by 25% ? Assume zero cannibalization

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting An Introduction To Concepts Methods And Uses

Authors: Clyde P. Stickney, Roman L. Weil

9th Edition

0030259622, 978-0030259623

More Books

Students also viewed these Accounting questions

Question

What is the general form of a ???? statistic?

Answered: 1 week ago