BU247 Lecture Notes - Lecture 16: Gross Margin

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6 Mar 2018
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Whale curve: cumulative profit and cumulative customers then plot it, top of whale curve turns flat, you make more in the beginning and then lose them nearing the end. Pricing waterfall: shows how much your revenue decreases the more discounts you give or the more you give away pieces of your revenue. 5-22 c) solution: let x% be the percentage change in net sales revenue, change in operating profit = (initial revenue) (x%) Initial profit margin = initial profit/initial revenue: % change in operating profit = x% / initial profit margin. 5-26: credit card companies earn revenues in 3 ways, 1) fees (usually a percent of the amount charged to the credit card, 2) interest on unpaid balances, 3) penalties for late payment. Identify the most profitable and the least profitable customers: from most profitable to least, 3, 4, 2, 1, 5, 6. Net orders: 175 (5*20*32/60) = 53. 33 (0. 5*200*32/60) = 53. 33.

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