Did Sony Profit from the Walmart $100 Discount?

[bumidan]

Then you can do the numbers as such:

With Promo
Pizza Revenue: $20
Less:
Cost of Pizza: $10
Cost of 2L Pop: $1.99
Gross Margin: 8.01

Without Promo, gross margin is $10.
So in this example, the promo reduces the margin but doesn't lose the company money. Hopefully the total revenue increases (bec of the promo) so that the TOTAL gross margin increases, even though the percentage falls.

obviously you can work with the actual costs and revenue if you have the correct numbers.

this is a much different scenario going back to the PS3- because the margins are very tight.