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Fiberia Accessories a clothing retailer is planning to introduce a new line of sweaters as...

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Fiberia Accessories a clothing retailer is planning to introduce a new line of sweaters as part of the winter collection for 65 with an inventory of 1500 The main selling season is 60 days between November and December The store then sells the remaining units in a clearance sale at 65 percent discount Out of the 60 main retail days Fiberia sells the sweaters at full retail price for only 45 days while giving a discount of 25 percent for the remaining 15 days The linear demand functions a and b an given as 79 5 and 1 1 respectively 9 10 A B Marked Down Pricing Model for Fiberia Accessories s New Sweater Retail Price Inventory Selling Season Days Days at Full Retail 65 1 500 60 45 25 Immediate Markdown Clearance Markdown 65 Demand Function a bP O 17 105 16 Calculate the revenue for the clearance sales period O 48 871 88 0 b O 18 921 09 79 5 1 1

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