Multiple Choice
Which of the following is the best short-term option to increase net sales and reach profitability?
4. Merchandising Operations
Net Sales
Multiple Choice
If a company wants to save \$21,600 over the course of a year to increase its net sales, how much money must it save each month?
A
\$1,800
B
\$2,100
C
\$1,200
D
\$1,600
Verified step by step guidance1
Step 1: Identify the total amount the company wants to save over the year, which is \$21,600.
Step 2: Determine the number of months in a year, which is 12 months.
Step 3: Use the formula for monthly savings: \( \text{Monthly Savings} = \frac{\text{Total Annual Savings}}{\text{Number of Months}} \).
Step 4: Substitute the values into the formula: \( \text{Monthly Savings} = \frac{21600}{12} \).
Step 5: Perform the division to calculate the monthly savings amount (this step is left for the student to complete).
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