Managerial Economics 13th Edition by James McGuigan,Charles Moyer,Frederick Harris

تمرين 20

Polo Golf Shirt Pricing
The setting is a Ralph Lauren outlet store, and the product line is Polo golf shirts. A product manager and the General Manager for Outlet Sales are analyzing the discounted price to be offered at the outlet stores. Let's work through the decision at the level of one color of golf shirts sold per outlet store per day. The decision being made is how low a price to select at the start of any given day to generate sales at that price throughout the day. The demand, revenue, and variable cost information is collected on the following spreadsheet:

Would you recommend lowering price to the level required to generate 15 unit sales per day Why or why not What does it mean to "sell at a negative margin"