If a Manager Desires to Increase Profit, He or She

question 143

Essay

If a manager desires to increase profit, he or she might attempt to modify sales volume, sales price or fixed or variable costs.Discuss how each of these might affect profit.

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Definitions:

Discount Factor(s)

A multiplier used in discounting or present value calculations that reflects the time value of money.

Required Rate of Return

The minimum percentage return that an investor expects to receive from an investment, considering its risk.

Straight-Line Depreciation

A method of calculating depreciation by evenly allocating the cost of an asset over its useful life.

Simple Rate of Return

A method to determine the efficiency of an investment, calculated by dividing the annual incremental net operating income by the initial investment's cost.