You are the manager of World Wide Athlete, a chain of six sporting goods shops in your area. The shops sell 15 racing bikes per week at a retail price of $659.99. Recently, you put the bikes on sale at $599.99. At the sale price, 18 bikes were sold during the one week sale.
(a)
What was your markdown percent on the bikes? (Round your answer to one decimal place.)
9.1
 
Correct: Your answer is correct.
 %
(b)
What is the percent increase in number of bikes sold during the sale?
20
 
Correct: Your answer is correct.
 %
(c)
How much more revenue (in $) would be earned in 6 months by permanently selling the bikes at the lower price rather than having a 1 week sale each month? (6 sale weeks in 26 weeks.)
$ 
5,399.82
 
Incorrect: Your answer is incorrect.
 more revenue

Let's go through part (c) of the question systematically to calculate how much more revenue would be earned by permanently selling the bikes at the lower price rather than having a 1-week sale each month.

### Data from the problem:

- Normal price per bike: $659.99
- Sale price per bike: $599.99
- Bikes sold per week at normal price: 15
- Bikes sold per week during the sale: 18
- 6 months = 26 weeks
- 6 sale weeks (1 per month) out of 26 weeks

### Step 1: Calculate revenue for 26 weeks under current strategy (with a 1-week sale each month).
The current strategy has 6 sale weeks and 20 normal weeks.

#### Revenue from normal weeks:
- Revenue per week = Number of bikes sold × Price per bike = 15 × 659.99
- Total revenue for 20 normal weeks = 15 × 659.99 × 20

#### Revenue from sale weeks:
- Revenue per sale week = Number of bikes sold × Sale price = 18 × 599.99
- Total revenue for 6 sale weeks = 18 × 599.99 × 6

#### Total revenue under current strategy:
\[ \text{Total revenue} = (\text{Revenue from normal weeks}) + (\text{Revenue from sale weeks}) \]

### Step 2: Calculate revenue for 26 weeks under the new strategy (permanently selling at the lower price).
If the bikes are permanently sold at the lower price, the number of bikes sold per week will be 18 for all 26 weeks.

- Revenue per week = Number of bikes sold × Sale price = 18 × 599.99
- Total revenue for 26 weeks = 18 × 599.99 × 26

### Step 3: Calculate the difference in revenue.

Let’s now compute these values to find out how much more (or less) revenue would be earned by permanently selling the bikes at the sale price.

I will calculate it now.The revenue difference is $17,999.40. This means that by permanently selling the bikes at the lower price, you would earn $17,999.40 **less** in revenue over 6 months, compared to the current strategy of having a one-week sale each month.

Would you like further details or have any questions?

Here are some related questions:
1. How can you calculate the break-even point if the sale continues?
2. What factors could influence demand more than price changes?
3. How do seasonal trends affect sales volume in the sporting goods industry?
4. What are some methods to increase profit margins on lower-priced items?
5. How does the elasticity of demand impact pricing strategies?

**Tip:** When discounting prices, always compare the impact on both sales volume and total revenue to ensure the strategy benefits the business overall.

You are the manager of World Wide Athlete, a chain of six sporting goods shops in your area. The shops sell 15 racing bikes per week at a retail price of $659.99. Recently, you put the bikes on sale at $599.99. At the sale price, 18 bikes were sold during the one week sale. (a) What was your markdown percent on the bikes? (b) What is the percent increase in number of bikes sold during the sale? (c) How much more revenue would be earned in 6 months by permanently selling the bikes at the lower price rather than having a 1-week sale each month?

Solve a real-world business problem involving the markdown percent on racing bikes, the percent increase in sales volume during a discount, and revenue analysis over a 6-month period. This problem involves percentage and revenue calculations and is suitable for Grades 10-12.

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