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Abercrombie & Fitch, once the favorite of loyal teens, is considering lowering prices on all items it sells in an effort to win them back after several years of sales declines. A&F's total sales were $3 billion last year, but they have been declining in the face of a weak economy and an intensively competitive retail environment. Price reductions are often effective in increasing sales, but marketers need to analyze how much sales must go up before a price reduction pays off and increases revenue enough to make the it worth doing. Assuming A&F's gross profit margin is 45 percent and cost of goods sold represents the only variable cost, by how much must sales increase to maintain the same gross profit margin in terms of absolute dollars if A&F lowers prices by 5 percent? The current gross profit is $ billion.
What is your understanding of the terms: marketing and selling? Are they the same? How do you differentiate the two terminologies? Provide examples to support your points.
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A particular salad contains 4 units of vitamin A, 5 units of vitamin B complex, and 2 mg of fat per serving. A nutritious soup contains 6 units of vitamin A, 2 units of vitamin B complex, and 3mg of fat per serving. If a lunch consisting of these two..
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Develop a chase aggregate plan for Draper using a permanent workforce of 12 employees supplemented by overtime. All demand must be met each period.
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