Question

Max is the marketing manager at the university bookstore. He is developing his marketing plans for the next school year. The bookstore is charged by the university to be a profit center for the school, therefore its important that Max manages the bookstore and prices its products in a way to generate profits. One of the most popular products sold at the bookstore is academic calendars to help students keep track of key dates throughout the school year. The university has 10,080 students registered for the upcoming semester, an increase of 5% versus a year ago. Last year Max sold 7,200 calendars at $5.00 each. The overall calendar sales were a bit disappointing, as he had to throw away 1,100 calendars that he'd printed yet went unsold. The cost of creating and printing the calendars was $19,183. He'd like to estimate his sales better this year to eliminate waste and maximize his profits. Use this information to answer the following questions:

Answer 1

Solution and Explanation:

• the total sales of calendars is as follows:

7200 multiply with $5 each = $36000

• In order to find out the profit, the toal of sales is to be subtarcted with costs. The given sales is $36000, costs is $19183

Thus, the total profit = $16817

95% of 10080 canot be taken in order to find out the correct number. 5% enrollment growth, is as follows:

10080 = 1.05 multiply "x"

thus, calculating x = 9600

• The number of studnets are 9600 in the last semester out of which 7200 bought calendar.    7200 divide 9600 = 75.0 percent sales penetration.