12)Your business is very good and your shop is 90 percent full each day. You decide that you'd like to move up from number 3 in service sales to number 2 in your town. You are sure that if you could fill that 10 percent of additional shop capacity, you can reach the number 2 spot. You decide that the best way to increase your sales 10 percent is to lower your prices 10 percent on all repair charges in your shop. Is your strategy for becoming number 2 a good one? Your business is very good and your shop is 90 percent full each day. You decide that you'd like to move up from number 3 in service sales to number 2 in your town. You are sure that if you could fill that 10 percent of additional shop capacity, you can reach the number 2 spot. You decide that the best way to increase your sales 10 percent is to lower your prices 10 percent on all repair charges in your shop. Is your strategy for becoming number 2 a good one? Yes No
12)Your business is very good and your shop is 90 percent full each day. You decide that you'd like to move up from number 3 in service sales to number 2 in your town. You are sure that if you could fill that 10 percent of additional shop capacity, you can reach the number 2 spot. You decide that the best way to increase your sales 10 percent is to lower your prices 10 percent on all repair charges in your shop. Is your strategy for becoming number 2 a good one? Your business is very good and your shop is 90 percent full each day. You decide that you'd like to move up from number 3 in service sales to number 2 in your town. You are sure that if you could fill that 10 percent of additional shop capacity, you can reach the number 2 spot. You decide that the best way to increase your sales 10 percent is to lower your prices 10 percent on all repair charges in your shop. Is your strategy for becoming number 2 a good one? Yes No
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
Problem 37P
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This is a 2 part question:
12)Your business is very good and your shop is 90 percent full each day. You decide that you'd like to move up from number 3 in service sales to number 2 in your town. You are sure that if you could fill that 10 percent of additional shop capacity, you can reach the number 2 spot. You decide that the best way to increase your sales 10 percent is to lower your prices 10 percent on all repair charges in your shop. Is your strategy for becoming number 2 a good one?
Your business is very good and your shop is 90 percent full each day. You decide that you'd like to move up from number 3 in service sales to number 2 in your town. You are sure that if you could fill that 10 percent of additional shop capacity, you can reach the number 2 spot. You decide that the best way to increase your sales 10 percent is to lower your prices 10 percent on all repair charges in your shop. Is your strategy for becoming number 2 a good one?
Yes
No
13)Referring back to question #12, you decide that the best way to increase your sales 10 percent is to lower your prices 10 percent on all repair charges in your shop. You currently have 100 customers and are operating at 90% capacity. Your current labor rate is $100 per hour. What would the increase, or decrease, in sales be if you could attract the extra 10 percent of business at a reduced labor rate of 10% ? Assume you will bill each customer for one hour of labor each. Hint: If your answer to question #12 was yes, you will have a positive number. If your answer to question #12 was no, you will have a negative number. Assume 100% capacity is 111 customers.
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