Concept explainers
Kay and Michael Passe publish What‘s Happening?—a biweekly newspaper to publicize local events. What’s Happening? has few subscribers; it typically is sold at checkout stands. Much of the revenue comes from advertisers of garage sales and supermarket specials. In an effort to reduce costs associated with printing too many papers or delivering them to the wrong location, Michael implemented a computerized system to collect sales data. Sales-counter scanners accurately record sales data for each location. Since the system was implemented, total sales volume has steadily declined. Selling advertising space amid maintaining shelf space at super markets are getting more difficult.
Reduced revenue makes controlling costs all the more important. For each issue, Michael carefully makes a
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