A sales manager has suggested that more units of a particular service could be sold if prices

Question:

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?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: