Sales executive: Recent changes to how our website is managed mean that our cost of business has risen by $1000 per month. While many have suggested that the best way to deal with this is to increase our prices in order to cover the difference, such behavior would induce our customers to look elsewhere for a similar, less expensive service. Instead we should focus on increasing our sales. Since our product sells for $100, if we can increase sales by a mere 10 users per month, then we can cover the difference in cost.
Type - assumption
Boil it down - Since our product sells for $100, if we can increase sales by a mere 10 users per month, then we can cover the difference in cost.
Pre-thinking -Apart from the $1000 increase in website management costs, there is no other cost associated with additional 10 new users
A. There are no additional costs associated with adding 10 new users beyond the $1000 increase in website management costs. - Correct - If there are other costs, then we will need to sell the product to more customers in order to compensate for these costs.
B. The increased website management costs do not change how users interact with the website. - Incorrect - it does not address whether we can cover the cost by adding 10 users per month
C. It is necessary for the company to make the changes to how the website is managed in order to maintain their current user base.- Irrelevant
D. The changes to the website will not make the website more difficult for the average user to use. - Irrelevant
E. Increasing sales is the only way for the company to make up the additional marketing cost each month. Irrelevant - the argument never claims that increasing sales is THE only way
Answer A
Recent changes to how our website is managed mean that our cost of business has risen by $1000 per month -- the increase in cost is 1000$ per month
Since our product
sells for $100, if we can increase sales by a mere 10 users per month, then we can cover the difference in cost. -
here it is mentioned that selling price of a product is 100 $ whereas it should be profit.If the profit per product is 100$ , then selling the product to 10 additional customers per month will lead to breaking even on the investment on website improvement.AjiteshArun ,
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