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What markdowns do to a fast fashion collection
The prompt
An illustrative fashion retailer in Europe buys 10,000 jackets at EUR 10 each and prices them at EUR 40. It sells 60 percent at full price, 30 percent at half price, and the last 10 percent is donated or recycled (EU rules now ban large companies from destroying unsold clothes). What are revenue and gross margin, compared with selling everything at full price?
Your interviewer will share data as you ask for it. Ask clarifying questions, state a hypothesis, then lay out your structure out loud before you calculate.
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