4 different companies competing over a single product have recently changed retail prices in order to increase their profits.
|Company ||Retail price change||Market share before change||Market share after change|
|A||20% increase||20%||30% |
|B||9% decrease||5%||9% |
|C||12% increase||30%||28% |
|D||19% increase||15%||33% |
Assuming that the product's initial price was equal for all companies, which company experienced the greatest increase in revenues?
Question 2:A company has set itself a goal to reach a 40% increase in monthly revenues. In order to do so, the company reduced the price of its product by 25%. What net increase in sales is needed in order to reach the desired goal?
Question 3 (advanced):
BigMart is a British supermarket chain which retails food, clothing and general merchandise. As part of BigMart's efforts to reduce operational costs, it was decided to integrate self-checkout cashier systems, operated directly by the customers, allowing only credit card payments. With this change, for every three self-checkout posts only one human cashier would be required, functioning as backup in case of problems occurring during the automated process. Nevertheless, an automatic work station is expected to work slower than a station operated by a skillful cashier. Therefore, it was initially agreed that 50% of the work stations would remain human operated, while two automatic stations would replace each human operated station removed. Additionally, surveillance cameras would be required to prevent product theft attempts by customers.
Before deciding the ratio between human and automatized work stations, BigMart tried a variety of automatization percentages, each in one of 6 branches. Could it have been possible for BigMart to choose a better automatization rate, and by how much would it differ from the one chosen?
| ||Branch 1||Branch 2||Branch 3 ||Branch 4||Branch 5 ||Branch 6 |
|Automatization percentage rate||33||25||80||75||50||66 |
|Net profit before pilot (quarterly, £)||2.000.000||1.990.000||1.550.000||2.100.000||1.900.000||2.300.500 |
|Net profit thourghout pilot (quarterly, £)||2.160.000||1.870.000||1.705.000||2.478.000||2.090.000||2.642.275 |