If the Volume of Sales Is $6,000,000 and Sales at the Break-Even

question 185

True/False

If the volume of sales is $6,000,000 and sales at the break-even point amount to $4,800,000, the margin of safety is 25%.

---

Definitions:

Scarcity Principle

A psychological principle suggesting that people find items and opportunities more valuable when they are perceived as scarce or limited.

Disrupt-then-reframe Technique

A sales technique that initially creates confusion or disruption in the consumer's mind, then offers a simple, positive reframe to encourage purchase.

Breaking up Attention

The act of dividing one's focus between multiple tasks or stimuli, which can reduce the effectiveness of cognitive processing.

Persuasion

An attempt to change a person’s attitude.