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Use the Markdown Pricing Model spreadsheet model and a two-way data table to find the...

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Accounting

Use the Markdown Pricing Model spreadsheet model and a two-way data table to find the total revenue if days at full retail vary from 20 to 40 in increments of 5 and the intermediate markdown varies from 25% to 60% in increments of 5%.

Markdown Pricing Model
Data
Retail Price $70.00
Inventory 1000
Selling Season (days) 50
Days at full retail 40
Intermediate markdown 30%
Clearance markdown 70%
Sales Data
Price(X) Average Daily Sales (Y)
$70 7
$49 32.2
Demand function parameters
Intercept 91
Slope -1.2
Model
Full Retail Sales
Retail price $70.00
Daily sales 7
Days at retail price 40
Units sold at retail 280
Retail revenue $19,600.00
Discount Sales
Discount 30%
Discount price $49.00
Daily sales 32.2
Unit sold 322
Discount revenue $15,778.00
Clearance Sales
Clearance price 21
Units sold at clearance 398
Clearance revenue $8,358.00
Total revenue $43,736.00

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