Colin’s company trains workers to lay road surfaces.
His forecasted and actual sales revenue for one month (up to 5 working days per week) are shown below.
- Forecasted sales revenue £28 000
- Actual sales revenue £14 000
In order to achieve his forecasted sales revenue, Paul could do each of the following, EXCEPT?
Select ONE answer:
- advertise more
- cut costs
- discount the training fee
- offer training on more days per week
Show the workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Business Studies KS4 & KS5 classes
The answer is 2
- Not correct – advertising more should increase sales revenue as the service becomes better known/creates more demand/attracts more customers.
- Correct – Definition of sales forecasting, e.g. the estimation of likely revenue/income in a period, given the trading conditions or defines sales revenue. Cutting costs is not a factor that increases demand as it is a supply factor. Cutting costs may lead to an increase in profit not an increase in sales.
- Not correct – discounting the training fee could give an advantage over competitors and therefore lead to more orders/increase in sales volume.
- Not correct – offering training on more days of the week allows more training to take place and therefore more customers to be catered for.
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