The partnership of Sally and Harry provides counseling services to customers in

Question

The partnership of Sally and Harry provides counseling services to customers in the Melbourne, Florida area. The owners charge $100 per hour to provide services to clients. The business has been open for two years and has one office.

What factor below would cause the owners to REDUCE its sales forecast for the next year:

   a. The economy will grow 10%.

   b. The selling price per hour next year will be $110.

   c. The owners plan to open a new office in Orlando.

   d. None of the above.

what factor below would cause the owners to INCREASE the sales forecast for the budget:

   a. Changes in the law require people to get counseling if they are

      convicted of certain crimes.

   b. The selling price per hour next year will be $110.

   c. The economy will decline 2%.

   d. All of the above

Explanation / Answer

Factor/s which will cause the owners to reduce the sales forecast for the next year:

1. The selling price per hour next year will be $110. This will lead to a decrease in sales forecast due to a decrease in demand(as a result of an increase in price)

Only the above factor among the given factors will lead to a reduction in sales forecast

Factor/s which will cause the owners to increase the sales forecast:

1. Changes in the law which require people to get counseling if they are convicted of certain crimes. This will lead to an increase in people availing counseling services.

Only the above factor among the given factors will lead to an increase in the sales forecast

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