Use the Information Below to Answer the Following Questions

question 4

Multiple Choice

Use the information below to answer the following questions.
Sales Extraordinaire sells one particular photo frame. It estimates that it can sell as many frames as it produces.
Sales price per unit $5.00
Variable cost per unit $2.00
Fixed costs per annum $9,000
-Refer to the table above. Increasing the sales price to $6.00 and having a sales volume of 3,000 photo frames would result in:

• A) breaking even.
• B) a loss of $1,000.
• C) a profit of $3,000.
• D) a profit of $1,000.

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Definitions:

Sales Proposal

A document designed to pitch products or services to potential clients, detailing benefits, pricing, and implementation strategies.

Cause-and-effect

A relationship between events or things, where one is the result of the other or others, demonstrating how different actions or events are linked.

Clarity of Message

The quality of being easily understood and free from ambiguity, crucial for effective communication in any medium.

Ambiguous Messages

Communications that can be interpreted in multiple ways due to unclear or vague language, leading to confusion or misunderstanding.