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Sales might increase because prices dropped. They might increase because more expensive salesmen were hired. They might increase because the neighborhood improved in value, however, taxes will go up or rent will go up. Thus, just because sales increase does not mean profits always increase.
What else can I help you with?
An increase in sales and profits generates the necessary cash required for economic growth?
An increase in sales and profits does not necessarily mean an economy will grow. The economy will only grow if the sales and profits are substantial in size.
Why can firms not always reduce prices until they increase sales and profits?
if marginal production costs exceed marginal revenues, the firm will suffer losses, not profits.
What are the differences between profit and sales maximisation objectives?
A Sales Maximisation objective aims at increasing the cash value turnover/Sales Income/Revenue. Costs and expenses are not taken into account. Profit maximisation seeks to increase the bottom-line profit, regardless of sales or other considerations. Profit = sales less costs. If sales reduce, but if costs reduce by a greater amount, profit will increase. If sales are less in such a scenario, the work required to achieve sales may be less, so more profit is being made with less effort, which would be a good indicator of the organisation's efficiency and ability to trade successfully despite business challenges. Profits can also be increased by maintaining at costs at their present level, and increasing the selling price. Assuming that the volume of sales does not decrease, bottom-line profits will increase. Sales maximisation can be an valid objective if the sole aim is to increase market share or other related reasons. However, Sales Maximisation accompanied by ever-decreasing profits cannot be sustained indefinitely.
Which would be the most likely cause of an increase in cooprate dividends?
an increase of corporate profits
Name two methods that businesses use to increase their profits?
Businesses often increase their profits by enhancing operational efficiency, which reduces costs and improves productivity. Additionally, they may focus on expanding their market reach through strategies like marketing campaigns, product diversification, or entering new markets to boost sales.
An increase in sales and profits generates the necessary cash required for economic growth?
An increase in sales and profits does not necessarily mean an economy will grow. The economy will only grow if the sales and profits are substantial in size.
Why can firms not always reduce prices until they increase sales and profits?
if marginal production costs exceed marginal revenues, the firm will suffer losses, not profits.
Will sales training increase the amount of profits?
It is a fair and accurate assumption that the more educated in a product one is, the more possibility of sales, thereby increasing profit. It is always the hope of whomever is conducting the sales training, that the training will pay off in higher profits.
What is the potential relationship between gross sales and profits?
The potential relationship between gross sales and profits are that if the gross sale decreases that also affects the profits by decreasing them because the gross sales are the total amount of the sale before any discounts or allowances are made on the sale. If the gross sales increase then the amount of profit also increases because the more the company sells the more the company has the potential to make more profits.
What is the goal of promotion?
Product recognition to increase sales that will results to more profits.
How would you increase sales or profits for the venue?
Efficiencies. Economies of scale. Lower costs.
If selling prices sales mix and cost structure remain the same do profits and sales increase using variable costing?
Equal
Why is Harley Davidson trying to build sales in china?
The same reason any company would want to build sales; to increase profits.
What are the objectives of boots?
To expand and grow, increase profits, maximise sales, improve social image, survival?
How are products differentals is used to try to increase profits?
Products differentials are used to try to increase profits in different ways. This is a strategy that is known as diversification whereby a supplier offers varied products to consumers which increases the chances of making sales and eventually profits.
What is the aim of marketing for the company?
Increase profits, satisfy customer, promote sales. Things like that. You may wish to increase sales, increase awareness of your business, increase visitors to your web site, increase the stickiness of your site, get more repeat clients... the list goes on and on.
What does not always increase a company's market value?
increase in the growth rate of sales
