When Starbucks introduced its instant coffee brand, Via, the company sold it in packages of three single-cup units. Starbucks' primary objective for selling Via in three-unit packages rather than single-unit packages was most likely
A. to encourage the consumer to try the product several times.
B. to encourage a higher consumption of all Starbucks products.
C. to sell more because of infrequent coffee purchases.
D. to reduce costs in the distribution and handling of the Via products.
E. to engage in environmentally responsible behavior.
Answer: A
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An important pitfall of an integrated overall cost leadership and differentiation strategy is that firms may fail to implement either one and become 'stuck-in-the-middle.'
Answer the following statement true (T) or false (F)
Duprey Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 2,200 client-visits, but its actual level of activity was 2,150 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:Data used in budgeting: Fixed Element per MonthVariable element per client-visitRevenue - $58.40 Personnel expenses$33,500 $18.00Medical supplies 1,000 9.90Occupancy expenses 9,300 2.20Administrative expenses 5,300 0.40Total expenses$49,100 $30.50?Actual results for January: ?Revenue$127,950 Personnel expenses$69,720?Medical supplies$23,125?Occupancy expenses$14,290?Administrative expenses$5,930???The net operating income in the planning
budget for January would be closest to: A. $14,547 B. $15,231 C. $10,885 D. $12,280
Which of the following statements is not correct?
a. Measures of central tendency determined from frequency distributions will only be approximations of the actual values. b. Measures of dispersion determined from frequency distributions will only be approximations of the actual values. c. In grouped data, each observation is given the value of its classification's mid-point. d. When data are grouped, the value of each individual observation is lost. e. All of the above statements are correct.
What is the shape of the yield curve and what expectations are investors likely to have about future interest rates?
Suppose the term structure of interest rates is shown below: Term 1 year 2 years 3 years 5 years 10 years 20 years Rate (EAR%) 5.00% 4.80% 4.60% 4.50% 4.25% 4.15% A) inverted; higher B) normal; higher C) inverted; lower D) normal; lower