25. Consider the following list of retail items sold in a small neighborhood gift shop.Average ProfitItem Annual Volume per ItemGreeting cards 3,870 $ 0.40T-shirts 1,550 1.25Men’s jewelry 875 4.50Novelty gifts 2,050 12.25Children’s clothes 575 6.85Chocolate cookies 7,000 0.10Earrings 1,285 3.50Other costume jewelry 1,900 15.00a. Rank the item categories in decreasing order of the annual profit. Classify eachin one of the categories as A, B, or C.b. For what reason might the store proprietor choose to sell the chocolate cookieseven though they might be her least profitable item?
25. Consider the following list of retail items sold in a small neighborhood gift shop.Average ProfitItem Annual Volume per ItemGreeting cards 3,870 $ 0.40T-shirts 1,550 1.25Men’s jewelry 875 4.50Novelty gifts 2,050 12.25Children’s clothes 575 6.85Chocolate cookies 7,000 0.10Earrings 1,285 3.50Other costume jewelry 1,900 15.00a. Rank the item categories in decreasing order of the annual profit. Classify eachin one of the categories as A, B, or C.b. For what reason might the store proprietor choose to sell the chocolate cookieseven though they might be her least profitable item?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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25. Consider the following list of retail items sold in a small neighborhood gift shop.
Average Profit
Item Annual Volume per Item
Greeting cards 3,870 $ 0.40
T-shirts 1,550 1.25
Men’s jewelry 875 4.50
Novelty gifts 2,050 12.25
Children’s clothes 575 6.85
Chocolate cookies 7,000 0.10
Earrings 1,285 3.50
Other costume jewelry 1,900 15.00
a. Rank the item categories in decreasing order of the annual profit. Classify each
in one of the categories as A, B, or C.
b. For what reason might the store proprietor choose to sell the chocolate cookies
even though they might be her least profitable item?
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