You are considering buying a store.The storeowner gives you an estimate of the net profits of the store on a typical day.The owner has most likely given you the figures for the day when
A)Sales are low,costs are high
B)Sales are very close to costs
C)Sales are high,costs are low
D)All of the above

Question

​You are considering buying a store.The storeowner gives you an estimate of the net profits of the store on a typical day.The owner has most likely given you the figures for the day when
A)​Sales are low,costs are high
B)Sales are very close to costs
C)Sales are high,costs are low
D)​All of the above

Quizplus · Accepted Answer

When sales are high and costs are low, it is more likely that the store will have a higher net profit. Option A, when sales are low and costs are high, will lead to a low net profit or even losses. Option B, when sales are very close to costs, may result in a small net profit, but it is risky and any small shift in sales or costs will result in losses. Option D is not correct, as not all options lead to high net profits. Thus, option C is the best choice as it aligns with the conditions for high net profit.

​You Are Considering Buying a Store

You Are Considering Buying a Store