Question

Assignment Irwin's sells a particular model of fan, with most of the sales being made in the summer months. Irwin's makes a one-time purchase of the fans prior to each summer season at a cost of $40 each and sells each fan for $60. Any fans unsold at the end of the summer season are marked down to $29 and sold in a special fall sale. Assume that all marked-down fans would be sold.

Answer 1

This question is about inventory management and pricing strategies in a business context, specifically related to a company selling fans.

Step-by-step explanation:

This question is related to the business subject. Specifically, it pertains to the concept of inventory management and pricing strategies.

Irwin's sells fans and makes a one-time purchase of them before each summer season. They buy each fan for $40 and sell it for $60. If any fans are unsold at the end of the summer, they mark them down to $29 and sell them in a special fall sale.

The business aspect here involves calculating the profit or loss based on the number of fans sold at the regular price and the number of fans sold at the marked-down price. It also involves considering the potential demand for fans in the fall sale and determining the most profitable pricing strategy.