# Revenue Assignment | Assignment Help Services

I need help with this worksheet and can not figure it out for the life of me, Im kind of in a rush can anyone help?

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Based on WS#6B: Janmar 20% Price Cut – Possible Retail Responses

Assume that the typical retail store has a GM of 40%:

Hence the following:

Initial             Price cut (1)       Price cut (2)      Price cut (3)

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Retail            \$100               \$100\$80\$88

CGS               \$60                \$48\$48\$48

(Janmar SP)

\$GM  (R)      \$40                 \$52\$32\$40

%GM (R)      40%               52% 40%45.5%

Given the above, answer the following:

A.  Which of the above would you characterize as best representing a price cut “pass through”? Explain your reasoning.

B.  Assume that the store is selling 100 units a month at the “Initial Price” of \$100. How many units would the store need to sell per month in each of the Price cut conditions above to maintain the \$ revenue of the “Initial Price” condition? Show your logic.

1.  Price cut (1):

2.  Price cut (2):

3.  Price cut (3):

C. Again ssume that the store is selling 100 units a month at the “Initial Price” of \$100. How many units would the store need to sell per month in each of the Price cut conditions above to maintain the \$ gross margin of the “Initial Price” condition? Show your logic.

4.  Price cut (1):

5.  Price cut (2):

6.  Price cut (3):

D. Which of the 3 responses above would you recommend to a retail client? Carefully explain the basis for your decision. What additional information would you find useful, and why? Get Math homework help today

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