Problem
Wowza 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, Wowza 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.
Calculate the daily sales during the discount sales period.
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Marked Down Pricing Model for Wowza Accessories' new sweater
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Data
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Retail Prices
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$65
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Inventory
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1500
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Selling Season (days)
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60
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Days at Full Retail
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45
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Intermediate Markdown
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25 percent
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Clearance Markdown
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65 percent
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Demand Function
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A
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79.5
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B
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1.1
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The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.