Question
Considering the overall sales data, if the boutique
implements a loyalty program that increases sales by 25% for each product in the next quarter, What will be the new total revenue generated from all products at their current selling prices? Direction: A small business, Trendy Boutique , specializes in three types of clothing items: Designer Dresses , Casual Wear , and Formal Suits . Over the past six months, the boutique has recorded sales data as follows: Designer Dresses: Cost Price (CP): ₹1,500, Selling Price (SP): ₹2,200 Casual Wear: Cost Price (CP): ₹800, Selling Price (SP): ₹1,200 Formal Suits: Cost Price (CP): ₹2,500, Selling Price (SP): ₹3,500 The total units sold over six months for each clothing item are as follows: Designer Dresses: 300 units Casual Wear: 600 units Formal Suits: 200 units During this period, the boutique encountered some fluctuations in sales due to seasonal demand, which affected the profit margins for each product category.Solution
New Units Sold: Designer Dresses = 300 + (25% of 300) = 375 Casual Wear = 600 + (25% of 600) = 750 Formal Suits = 200 + (25% of 200) = 250 New Total Revenue: Designer Dresses = 375 × 2,200 = ₹825,000 Casual Wear = 750 × 1,200 = ₹900,000 Formal Suits = 250 × 3,500 = ₹875,000 Total Revenue = 825,000 + 900,000 + 875,000 = ₹2,600,000
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