Does higher return online justify reduction in retail sales

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Question: As is clearly indicated in the figure 3 income statement, even though Online sales accounts for 40% of the total sales of VOX, it is clear the return on sales is superior (almost 6%). Costs to run online operations are lower because there are less overall company costs (labour, administration, and corporate support) required for this service. However, profit does not paint a clear picture customer satisfaction. Musical instrument marketplace is dominated by customers wanting to try instruments. Does a higher return online justify a reduction in retail sales?

Reference no: EM133612111

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