A flower delivery business wants to raise their overall sales volume to increase profit. After analyzing their costs, they choose their most popular line of flower arrangements and run a promotion on those arrangements. How would this promotion lead to higher profits?

Question: A flower delivery business wants to raise their overall sales volume to increase profit. After analyzing their costs, they choose their most popular line of flower arrangements and run a promotion on those arrangements. How would this promotion lead to higher profits?

Options:

  • By lowering the price of the flower arrangements to increase demand.
  • By lowering the cost of the flower arrangements to increase margin.
  • By raising the revenue to increase demand.
  • By raising the margin on the arrangements to increase revenue.

Answer: By lowering the price of the flower arrangements to increase demand.

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