An electronics store usually sells televisions for $1000 but business has been slow and it needs to sell them before the new model comes out.The shop buys the televisions in bulk for $550 each.The manager estimates they can only sell the old televisions for $375 each.What should the store do?

Question

Quizplus · Accepted Answer

Selling the televisions for $375 still allows the store to make a profit of $375 each ($375 - $550 = $-175, but the original selling price of $1000 creates a profit of $375). Holding onto the televisions and not selling them would result in a loss for the store. Selling them back to the bulk seller may not be an option or may result in a lower price than $375. Giving the televisions as a bonus to employees would not generate revenue for the store.

An Electronics Store Usually Sells Televisions for $1000 but Business