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Interview Question

ENTRY Interview

How would company x increase revenue without incurring a

  significant cost?
Answer

Interview Answer

1 Answer

0

Increase prices.
Revenue = prices x volume

Volume changes comes at a cost (var cost of producing additional units of products)
The other variable is price. Changing it incurs no cost.
It remains to be seen how the decrease in number of units sold (higher prices = lesser marginal sales) increases the bottom line.

Jixavius on Jan 18, 2010

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