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To help understand the factors impacting a sales budget, you are to visit three businesses with the same ownership or franchise membership. Record the selling prices of two identical products at each location, such as regular and premium gas sold at Chevron stations. You are likely to find a difference in prices for at least one of the three locations you visit.
Required
Identify at least three external factors that must be considered when setting the sales budget. (Note: There is a difference between internal and external factors that impact the sales budget.)
What factors might explain any differences identified in the prices of the businesses you visited?
Prepare a new contribution format income statement under each of the following conditions - the sales volume increases by 100 units.
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