Zara sells 5% of its fast fashion items at a 20% markdown. If the value of...
Zara sells 5% of its fast fashion items at a 20% markdown. If the value of each item is $30 and the cost to make each item is $18, then what is the productivity ratio if Zara sells 1,000 units? (Enter your response rounded to two decimal places.)
Homework Answers
Output = Net Revenue
= Revenue from items sold at full price + Revenue from items sold at markdown price
= 1000*(.95*30+.05*30*.8)
= $ 29,700
Input = Total cost
= 1000*18
= $ 18,000
Productivity ratio = Output / Input
= 29700 / 18000
= 1.65
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