Question

Juan has just opened a parking garage. His costs include employee salaries, building upkeep, computer systems, and weekly paid advertisements in local

newspapers. In the first month, Juan's revenue has been very low. How can Juan reduce his costs without affecting the business's productivity and profitability?
He can increase the number of employees in the garage.
He can increase the number of parking spaces in the garage.
He can reduce advertisement expenses.
He can decrease the number of assets, such as computers, that the garage owns.

Answer 1

Option C, He can reduce advertisement expenses.

Step-by-step explanation:

Marketing in any industry requires lot of inputs in terms of finance. Here, in this case (like any other company) a large sum of money is spent on marketing and advertisement. Instead of paying money for advertisements, Juan can prefer to market or advertise his garage through online social media platforms for better reach and by this way he can also cut the cost.

Option C is correct