geirskogul
New member
- Joined
- Oct 15, 2015
- Messages
- 4
ShellCO sells shells at $2.71 per shell with a tiered discount based on order purchase price:
It costs ShellCO 0.12% + $0.50 for processing each order (after the discount%).
It costs ShellCO a flat $3.33 per delivery for each order.
Assume the remainder of each order is profit
What is currently the most cost effective discount tier for ShellCO? Is it possible to increase ShellCO's profit by altering its current discount table? If so, how?
How could you increase the overall profitability of ShellCO's bulk discounts without altering it's price per shell?
____________________________________________
I don't even know where to start... :| please help!
Order Amount (pre-discount) | Discount% |
$0-31.99 | 0% |
$32-39.99 | 1% |
$40-53.99 | 2% |
$54-66.99 | 3% |
$67-80.99 | 4% |
$81-107.99 | 5% |
$108-134.99 | 6% |
$135-270.99 | 7% |
$271-541.99 | 8% |
$542+ | 9% |
It costs ShellCO 0.12% + $0.50 for processing each order (after the discount%).
It costs ShellCO a flat $3.33 per delivery for each order.
Assume the remainder of each order is profit
What is currently the most cost effective discount tier for ShellCO? Is it possible to increase ShellCO's profit by altering its current discount table? If so, how?
How could you increase the overall profitability of ShellCO's bulk discounts without altering it's price per shell?
____________________________________________
I don't even know where to start... :| please help!