Question

Shirley Floyd makes handmade quilts. Using direct distribution, she sold 20 quilts last year

at $550 each. This year she is considering using an indirect channel by selling to three area
craft stores. This way, she estimates that she can sell 35 quilts at $400 each. What will be
the difference in revenue if she makes the change?

Answer 1

20 quilts x £550 each = £11,000

35 quilts x £400 each = £14,000

£14,000 - £11,000 = £3,000

Shirley will make £3,000 more in revenue if she makes the change.

Hope this helps