Question

Sabrina’s Soccer produces soccer balls and soccer nets, which are sold at sporting goods stores.

Which factors directly affect the company’s profit? Check all that apply.

a stocking up on soccer cleats and uniforms
a rise in the number of soccer leagues
a decrease in the cost of raw materials
the opening of two sporting goods stores
the push for physical activities in schools
Mark this and return

Answer 1

Correct answers:
- a rise in the number of soccer leagues — increases demand for balls and nets, raising revenue.
- a decrease in the cost of raw materials — lowers production costs, increasing profit.
- the opening of two sporting goods stores — increases points of sale/market access, likely raising sales and revenue.
- the push for physical activities in schools — increases demand for soccer equipment, raising revenue.

Not chosen:
- stocking up on soccer cleats and uniforms — this affects sales of other products and only indirectly (if at all) affects demand for the company’s balls and nets.