Use the Table Below to Answer the Following Questions) -Calculate the Total Units Sold During the Discount Sales Period

question 40

Multiple Choice

Use the table below to answer the following questions) .
Fiberia Accessories, a clothing retailer, is planning to introduce a new line of sweaters as part of the winter collection for $65 with an inventory of 1500. The main selling season is 60 days between November and December. The store then sells the remaining units in a clearance sale at 65 percent discount. Out of the 60 main retail days, Fiberia sells the sweaters at full retail price for only 45 days, while giving a discount of 25 percent for the remaining 15 days. The demand functions a, and b are given as 79.5 and 1.1 respectively. $$\begin{array} { | l | l | } \hline \text { Marked Dawn PricingModel for } & \\ \text { Fiberin Accessaries's nev sweater } & \\\hline & \\\hline \text { Data } & \\\hline & \\\hline \text { Retail Price } & \$ 65 \\\hline \text { Inventary } & 1500 \\\hline \text { SellingSensan days) } & 60 \\\hline \text { Days at Full Retail } & 45 \\\hline \text { Intermediate Markdawn } & 25 \text { percent } \\\hline \text { Clearance Markdawn } & 65 \text { percent } \\\hline \text { Demand Function } & \\\hline \text { A } & 79.5 \\\hline \text { B } & 1.1 \\\hline\end{array}$$
-Calculate the total units sold during the discount sales period.

• A) 388.13
• B) 25.88
• C) 133.3
• D) 39.28

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Definitions:

Costs

Expenses incurred in the production and distribution of a product or in the provision of a service.

Option to Abandon

A business decision tool that allows a company to cease investment in a project if it no longer becomes financially viable.

Discounted Cash Flow Analysis

Discounted Cash Flow (DCF) Analysis is a method used to estimate the value of an investment based on its expected future cash flows, adjusted for the time value of money.

Strategic Options

Various choices available to a company to achieve its business objectives and increase shareholder value.