Ques:- A travel agency makes a 10% commission on all of its travel bookings. Their current profit before taxes is $1MM, while the industry average ranges from $2MM to $3.5MM. Why are they making less than the industry average?
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Right Answer:
The travel agency may be making less than the industry average due to factors such as higher operational costs, lower sales volume, less effective marketing strategies, or offering less competitive pricing compared to other agencies.
The travel agency may be making less than the industry average due to factors such as higher operational costs, lower sales volume, less effective marketing strategies, or offering less competitive pricing compared to other agencies.