Based on Massages For You offering a lower one-year membership monthly fee, this is called <u>Trading up.</u>
<h3>What is the Trading Up selling technique?</h3>
Trading up refers to when a customer is subtly encouraged to spend more money on a product because a higher quality is offered against a lower quality.
A single massage here is $75 yet a monthly subscription is $65 per month which would be $780 a year.
This is trading up because the lower monthly price will lead to the person spending more on the yearly subscription as opposed to the single massage.
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Human Resource Management deals with issues related to compensation, performance management, organisation development, safety, wellness, benefits, employee motivation, training and others. HRM plays a strategic role in managing people and the workplace culture and environment.
An expanded income statement is generally divided by the different categories of revenue. The most common categories are <u>sales expenses and general and admin expenses.</u>
The selling, general, and administrative expense, or SG&A, refers to all corporate operational costs that are not accounted for in the cost of products sold. Since they raise a company's break-even point, management should exercise strict control over these expenses.
Prime costs are a company's outlay for the components used in production. The direct costs of labor and raw materials used in the production of a good are determined by the sales expenses and general and admin expenses. The direct costs of labor and raw materials used in the production of a good are determined by the prime cost.
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Answer:
E. Suppose a firm's total assets turnover ratio falls from 10% to 9%, but at the same time its profit margin rises from 9% to 10% and its debt increases from 40% of total assets to 60%. Under these conditions, the ROE will increase.
