What factors directly affect Sabrina’s Soccer’s profit? Check all that …

Social Studies Questions

Sabrina’s Soccer produces soccer balls and soccer nets, which are sold at sporting goods stores. Which factors directly affect the company’s profit? Check all that apply. a stocking up on soccer cleats and uniforms a rise in the number of soccer leagues a decrease in the cost of raw materials the opening of two sporting goods stores the push for physical activities in schools

Short Answer

The company’s profits will benefit from an increase in soccer leagues due to higher demand for products like soccer balls and goal nets. Additionally, decreased raw material costs and the opening of new sporting goods stores will further boost profitability by enhancing sales and margins.

Step-by-Step Solution

Step 1: Understand the Impact of Soccer Leagues

The company’s profits will be positively affected by an increase in the number of soccer leagues. This is because more leagues create a higher demand for essential products like soccer balls and goal nets. With more consumers looking to purchase these items, sales will consequently rise, leading to increased revenue for the company.

Step 2: Evaluate Raw Material Costs

A decrease in the cost of raw materials enhances profitability by allowing the company to maintain their sales prices while increasing their margins. When the cost of production decreases, the company can either lower prices to attract more customers or keep prices steady to enjoy greater profit margins. This positive shift directly boosts the company’s bottom line.

Step 3: Consider Local Market Changes

The opening of two new sporting goods stores in the locality will also positively impact profits. This expansion means increased demand for inventory, driving sales upward. Furthermore, having more stores means customers will have greater access to the products, creating a larger customer base and thus enhancing overall profitability.

Related Concepts

Soccer Leagues

Organizations or competitions where soccer teams play against each other, influencing consumer demand for soccer-related products

Raw Material Costs

The expenses associated with the raw materials needed for production, which affect profitability and pricing strategies

Sporting Goods Stores

Retail establishments that sell sports equipment and apparel, increasing accessibility and demand for products in the local market.

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