shoaaa
Feb 9, 2017, 12:27 PM
You are a business analyst who is helping the Sales department defining DonDuck's strategy on 3 products: Product 1 - Luxury product, Product 2 - mid end tier of an essential category, Product 3 - mid end tier of an essential category. Which is the best strategy to pursue (you only got approval from your management to choose one) if the target is to increase 5% the profit (Annual profit = 68000$ today) without impacting the overall image of our company's luxury products? Select 1 of the answers below
Cost per unit
price per unit
Number of units sold
Product 1
5
70
100
Product 2
1
15
1000
Product 3
0.5
10
5000
*
Do a promotion of 40% off Product 1, which we know that will increase the number of sales by 4 times.
Do a promotion of 40% off in Product 3, which we know that will increase the number of sales by 83%.
Do a promotion of 5% off in Product 2, which we know that will increase the number of sales by 40%.
Cost per unit
price per unit
Number of units sold
Product 1
5
70
100
Product 2
1
15
1000
Product 3
0.5
10
5000
*
Do a promotion of 40% off Product 1, which we know that will increase the number of sales by 4 times.
Do a promotion of 40% off in Product 3, which we know that will increase the number of sales by 83%.
Do a promotion of 5% off in Product 2, which we know that will increase the number of sales by 40%.