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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.
Based on the readings for the week, would you say that Steve Jobs was an ethical leader? State your rationale. Are you an Acolyte or a Rejector? Why?
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Pick a company or organization and do a complete risk management analysis of it, using an ERM format which should include business risks that are beyond the typical scope of insurance. An example of this would be medical malpractice risks faced by a ..
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