Laurel Wants to Save $25,000 to Buy a New Car

question 27

Multiple Choice

Laurel wants to save $25,000 to buy a new car. Instead of focusing on saving the whole amount, she works to earn $1,000 at a time. This makes the process seem more manageable to her. Laurel is using the __________ heuristic.

• A) availability
• B) subgoaling
• C) algorithm
• D) mechanical

---

Definitions:

Break-even Point

The level of production or sales at which total costs equal total revenue, resulting in no net loss or gain.

Sales Mix

The composition of a company's product or service offerings and their relative quantities sold, influencing overall profitability.

Break-even Point

The level of production or volume of sales at which total costs and total revenue are equal.

Sales Increase

A rise in the volume or value of products or services sold by a business over a specific period.