Which two of the following might help Nick to increase sales volume?
Select two answers - Edexcel - GCSE Business - Question 5 - 2016 - Paper 1
Question 5
Which two of the following might help Nick to increase sales volume?
Select two answers.
A. Increase spending on marketing
B. Employ fewer production staff
C. Failu... show full transcript
Worked Solution & Example Answer:Which two of the following might help Nick to increase sales volume?
Select two answers - Edexcel - GCSE Business - Question 5 - 2016 - Paper 1
Step 1
A. Increase spending on marketing
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Answer
Increasing spending on marketing can enhance brand awareness and attract more customers, thereby potentially increasing sales volume.
Step 2
B. Employ fewer production staff
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Answer
Employing fewer production staff might not help to increase sales volume as it could decrease production capacity and the ability to meet customer demand.
Step 3
C. Failure of a competitor
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Answer
If a competitor fails, it can create a market opportunity for Nick, allowing him to capture their customer base and increase sales volume.
Step 4
D. Reduce net cash flow
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Answer
Reducing net cash flow does not contribute positively to increasing sales volume and can hurt the overall business health.
Step 5
E. Increase the price of all of his products
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Answer
Increasing the price may not lead to an increase in sales volume and can potentially deter existing customers.
