2. An analysis of selling costs shows: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) 2 Management may want to consider offering discounts for large orders. Small orders are preferable to medium sized orders. 2 Large orders are preferable to medium sized orders. ? Marketing should be focused on small sized orders.

ASA Tours operates a network of offices around the globe specializing in local tours given by local residents and academics. Depending on the year, it operates at between 60 and 70 percent of capacity, which consists of locals who meet the criteria required by ASA. ASA operates three types of tours. Web-based tours consist of live-stream broadcasts with a limit of 15 participants. Group tours consist of small groups of no more than eight people. Finally, there are individual tours, which are personalized tours for no more than six people. Segmented income statements for a typical month appear as follows: Routes Sales Variable costs Fixed costs allocated to tours Operating profit (loss) Web-Based Group $ 283,600 220, 800 93,092 Required a 1 Required a 2 Required b $ 115,800 27,600 39,396 $ 48,804 $ (30,292) Individual $ 189,600 105,800 63,012 $ 20,788 ASA is considering dropping the group tours. If these tours are dropped, the revenue associated with the tours would be lost and the…