In the Financial Data and Projections Section of the Paradise

question 30

Multiple Choice

In the financial data and projections section of the Paradise Kitchens marketing plan, the company chose to use a bar chart in addition to a numerical table to present its actual and projected sales revenues from 2015 to 2020. Paradise Kitchens made this decision because

• A)the bar chart made the lack of sales for the previous years less dramatic.
• B)the numerical sales figures were too difficult to interpret.
• C)there was too much information to present in such small physical space.
• D)a bar chart could gloss over inconsistencies and anomalies.
• E)the bar chart more clearly shows the company's projected growth.

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Definitions:

Annual Revenue

The total amount of money earned by a business over a year from its sales or services.

Economic Profits

Profits calculated by subtracting both explicit and implicit costs from total revenues.

Explicit Costs

The direct payment made to others in the course of running a business, such as wages, rent, and materials.

Implicit Costs

Implicit costs are the opportunity costs associated with a company's use of internal resources that could have been utilized elsewhere, not directly paid out in cash.