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Dana Owns Her Own Real Estate Agency

question 13

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Dana owns her own real estate agency.She has been working hard to increase her client base.She offers the most comprehensive advertising campaign in the city and it has been paying off by the steady increase in the number of listings over the last several months.However,Dana is concerned that her extensive cost for advertising is eating into her profits.It is difficult to determine how much she spends on advertising for each listing because some of her advertising sources are fixed amounts each month and others are more variable in nature.She would like to analyze the following information to determine how her advertising costs behave based on the number of listings. Dana owns her own real estate agency.She has been working hard to increase her client base.She offers the most comprehensive advertising campaign in the city and it has been paying off by the steady increase in the number of listings over the last several months.However,Dana is concerned that her extensive cost for advertising is eating into her profits.It is difficult to determine how much she spends on advertising for each listing because some of her advertising sources are fixed amounts each month and others are more variable in nature.She would like to analyze the following information to determine how her advertising costs behave based on the number of listings.   Using the high-low method,what is Dana's variable cost per listing for advertising? A) $610 B) $593 C) $612 D) $598 Using the high-low method,what is Dana's variable cost per listing for advertising?

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Definitions:

Prices

The sum of money needed to buy goods or services.

Synergy

Synergy occurs when the combined effect of a group or system of entities is greater than the sum of their individual effects, often resulting in increased efficiency or productivity.

Profitable

refers to a financial state where income exceeds expenses, leading to a positive net outcome.

Discounted Future Profits

The present value of the expected future earnings of a company, discounted at an appropriate rate to account for risk and time.

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