kye
0450-20-O-N-13-3e
chloe
TOPIC QUESTION - PAPER 1
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chloe
October 21, 2025 at 6:42:41 AM
May/June 2022
Version 3
5.0 Financial Information and Decisions
5.3 Income Statements
YOUR ANSWER
Using the number of sales to decide whips shops to close is a good idea because CLN can save money on rental and wages, and buy better quality electrical equipment and improve shops that are making higher sales. This ensures that CLN shops are only placed in strategic location that ensure sales, and also ensures CLN is spending money wisely.
However, closing shops based on number of sales will decrease CLN’s brand awareness from people, which also might affect future sales when people decide on an elecrtrical shop that is reliable.
I think that using the number of sales to decide which shjops to close is the best way because it allows CLN to identify areas that have their target audience, and also prevents CLN from spending money where not needed.
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