A sales manager has suggested that more units of a particular service could be sold if prices
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A sales manager has suggested that more units of a particular service could be sold if prices were lowered and that, overall, this would result in increased profits. This suggestion would lead to a favourable sales volume variance, but also to an adverse sales price variance. The sales manager is confident that the former is greater than the latter.
Can you think of a reason why the sales manager should not go ahead with the price reduction?
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Related Book For
Accounting And Finance For Non Specialists
ISBN: 9781292334691
12th Edition
Authors: Peter Atrill, Eddie McLaney
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