Quantitative business analysis | Business & Finance homework help
The relationship between total gross sales and the other three variables is dependent on how they interact with each other. For example, a higher number of units sold can increase total gross sales if the pricing structure is profitable enough to cover costs associated with manufacturing and delivery. If unit cost is high but there are fewer units sold, then total gross sales may not be as high as it would be with lower cost and increased volume. The same goes for average transaction value – if the cost per transaction is higher than average but there are fewer transactions taking place, then overall revenue will suffer. It’s important to consider all of these variables when evaluating total gross sales in order to determine what strategies should be employed in order to maximize profits.