Darrell Is the Owner of a Furniture Store

question 28

Multiple Choice

Darrell is the owner of a furniture store.Last year,his total revenue was $525,000 and his total labor costs were $200,000.His overhead expenses,including insurance and legal fees,were $175,000.The rent on his building was $45,000.Darrell could earn $105,000 per year working at a nearby furniture distributor.If his total revenue increases to $600,000 this year and all of his other expenses are held constant,we know that his economic profit is now:

• A) $75,000.
• B) $600,000.
• C) $0.00.
• D) $105,000.
• E) $200,000.

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Definitions:

Handling Objections

The practice of addressing concerns or doubts raised by customers during the sales process to facilitate a transaction.

Denial

A psychological defense mechanism wherein an individual refuses to accept reality or facts, often as a way to avoid dealing with uncomfortable feelings or events.

Sales Territories

Designated geographic or demographic areas assigned to sales representatives or teams to manage and generate sales.

Revenue Growth

The increase in a company's sales and income over a specific period, indicating its business success.