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3. Compute the projected profit for the order quantities suggested by the management team under three scenarios: worst case in which sales equal 10,000 units, most likely case in which sales equal 20,000 units, and best case in which sales equal 30,000 units.
In this case, there's no denying that the promotion yielded a significant sales increase, but does not appear to generate enough profit, short-term or long-term, to pay for the promotion. 1  Our promotion is Take 20% Off Of Your Order, Today Only. 2  Average order value = $100. 3  35% of demand converts to profit.