Update

Muft Shiksha™ एक 100% Free Education Portal है 🇮🇳, जिसका उद्देश्य Class 9–12 के हर विद्यार्थी तक High-Quality Education को पूरी तरह मुफ्त पहुँचाना है। 🇮🇳 हम मानते हैं कि अच्छी शिक्षा किसी student की आर्थिक स्थिति पर निर्भर नहीं होनी चाहिए। 🇮🇳 हर विद्यार्थी को वही Quality Study Material, MCQs, Quizzes, Exam Preparation, Concept-Based Learning और Bilingual Support मिलना चाहिए, जो आमतौर पर महंगी Coaching या Premium Platforms में मिलता है। Muft Shiksha™ 🇮🇳 इसी सोच के साथ बनाया गया है

Subjects
1 reads0 ratings0 helpful

An entrepreneur offers discounts to increase sales, but total profit falls. What is the best analysis?

Answer and explanation

Correct answer: Sales volume alone does not show success

Sales volume measures how many units were sold, whereas profit depends on the money left after costs. A discount reduces the selling price and may reduce profit per unit. Even if more units are sold, the extra contribution may be smaller than the discount and other costs, causing total profit to fall. Therefore, the entrepreneur should compare revenue, variable costs, fixed costs, and the number of units sold. The other statements are absolute or deny the clear relationship between price, cost, and profit.

Related tags

DiscountProfitSales-VolumeIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

Was this question useful?

No ratings yetWrite a review / Rate this question

Student Reviews

No published reviews yet.

Add Muft Shiksha to your Home Screen

In Safari, tap Share, then Add to Home Screen.