Answer the Following Questions Using the Information Below

question 14

Multiple Choice

Answer the following questions using the information below:
Patrick Ross has three booth rental options at the country fair where he plans to sell his new product.The booth rental options are:
Option 1: $1000 fixed fee,or
Option 2: $750 fixed fee + 5% of all revenues generated at the fair,or
Option 3: 20% of all revenues generated at the fair.
The product sells for $37.50 per unit.He is able to purchase the units for $12.50 each.
-Which option should Patrick choose to maximise income assuming there is a 40% probability that 70 units will be sold and a 60% probability that 40 units will be sold?

• A)Option one
• B)Option two
• C)Option three
• D)All options maximise income equally.

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Definitions:

Persuasive Messages

Communications designed to influence the attitudes, beliefs, or actions of others.

Direct Order

A direct order is a straightforward, authoritative command or instruction that leaves little room for misunderstanding or deviation by the recipient.

Sales Message

A communication designed to persuade a potential buyer to purchase a product or service.

Readers

Individuals who engage in the act of reading text in order to comprehend, interpret, or enjoy content.