A large retailer can increase profits by reducing the markup on a fast-selling product by selling more units overall. This strategy relies on the increased volume of sales compensating for the lower profit margin per unit. Lowering the markup can attract more customers, which can lead to an increase in total sales volume and, ultimately, higher profits.
How can a large retailer increase profits by reducing the markup on a fast-selling product?
Multiple choice question.
by selling the same number of units overall
by selling more units overall
by selling fewer units overall
by selling the same number of units to fewer customers
1 answer