ABC Corp. operates in an industry where prices for their products are rapidly falling due to aggressive discounting. One strategy to compare results from last year to this year is to analyze:
A) sales in terms of units.
B) sales by territory.
C) growth in number of distributors.
D) expense ratios.
E) none of the above would help in the analysis.

Question

Quizplus · Accepted Answer

Since prices have been falling due to aggressive discounting, analyzing sales in terms of units will help in determining the volume of products sold, which indicates how effective the company's strategy has been in maintaining market share or increasing it. This will give a clear picture of how much customers were attracted to the product at the given price, and how well the company has been performing in terms of sales volume.

ABC Corp Operates in an Industry Where Prices for Their Products