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To: Conservative Firster
If a store normally sells 20 refrigerators of a certain model per day at a cost of $400, but decides for a that for a week it will sell them for $350, should that decision be expected to cost the store $1,000/day (or $7,000 total)?

If, during that week, customers flock the store and buy 100 refrigerators per day instead of 20, does that mean that the decision to cut prices cost the store $5,000/day ($35,000 total)--five times what was expected?

2 posted on 02/11/2005 3:36:26 PM PST by supercat (Michael Schiavo is trying to starve Terri not because she's dying, but because she ISN'T.)
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To: supercat
If a store normally sells 20 refrigerators of a certain model per day at a cost of $400, but decides for a that for a week it will sell them for $350, should that decision be expected to cost the store $1,000/day (or $7,000 total)?

What is the profit margin on the fridges? Did selling 100 lower priced fridges result in more profit than the 20 at the higher price?

Don't confuse profit NOT made as a loss.

12 posted on 02/12/2005 8:30:48 AM PST by CPOSharky (Demoncrat speak - "Bipartisan" is only used when Republicans are the majority.)
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To: supercat

It depends on what the margin is for the store on each unit. If the cost to the store is say $300, the store makes $3000 MORE profit at the $350 price than before.


13 posted on 02/12/2005 8:37:09 AM PST by expatpat
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