Joan is trying to gather information on the membership at her Zen Center. She estimates that it will cost around $1,000 to gather the information but expects the information to lead to increased membership revenue of $1,100. Based on this information, Joan should
A) not gather the information since she will only gain $100.
B) gather the information since the net gain will be $100.
C) not gather the information since it will cost money and the Zen Center is a not-for-profit organization.
D) gather the information regardless of the cost.

Question

Quizplus · Accepted Answer

Joan should gather the information since the expected revenue from increased membership is greater than the cost of gathering the information. Although the net gain is only $100, it is still a positive gain and therefore worth the investment. Additionally, being a not-for-profit organization does not mean that the Zen Center should not invest in gathering important information that could lead to increased revenue and success.

Joan Is Trying to Gather Information on the Membership at Her