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Phil's Army Surplus calculator business was going great guns -- especially the newest models with exclusive camouflage color schemes. These calculators blended into a variety
Phil's Army Surplus calculator business was going great guns -- especially the newest models with exclusive camouflage color schemes. These calculators blended into a variety of backgrounds making them virtually invisible to everyone except those equipped with polarized "Cheep" sunglasses. Phil sold the calculators and sunglasses combination package from his own dedicated web site: Phil-the-bill.com. The packages sold for $37 earning Phil a margin of 44% percent. Shipping was extra. He also sold the calculator + polarized glasses combination for the same price through an online department store, BigMuddy.com. Big Muddy earns a 20% commission on sales resulting from clickthroughs originating from BigMuddy. The latter accounts for 17% of total unit sales and somewhat less of dollar sales after commissions were paid. Weekly sales of the combination package are 410 units. 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. Phil's Army Surplus calculator business was going great guns -- especially the newest models with exclusive camouflage color schemes. These calculators blended into a variety of backgrounds making them virtually invisible to everyone except those equipped with polarized "Cheep" sunglasses. Phil sold the calculators and sunglasses combination package from his own dedicated web site: Phil-the-bill.com. The packages sold for $37 earning Phil a margin of 44% percent. Shipping was extra. He also sold the calculator + polarized glasses combination for the same price through an online department store, BigMuddy.com. Big Muddy earns a 20% commission on sales resulting from clickthroughs originating from BigMuddy. The latter accounts for 17% of total unit sales and somewhat less of dollar sales after commissions were paid. Weekly sales of the combination package are 410 units. 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
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