Answer the following statements true (T) or false (F)
1. If a company reduces its fixed costs, the operating income will increase by the same amount as the cost reduction.
2. Managers' decisions may cause costs to behave differently than predicted by CVP analysis.
3. Managers can use contribution margin to predict the change in operating income when volume changes.
4. If all other factors remain constant, an increase in fixed costs will increase the breakeven point.
5. The amount by which sales can decrease before the company incurs an operating loss is called the breakeven point.
1. True
2. True
3. True
4. True
5. False
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Dividing the NMC by the investment in marketing and sales produces the marketing return on investment
Indicate whether the statement is true or false
In countries where capital gains are not taxed, investors should prefer to own stocks rather than debt compared to investors in countries where capital gains are taxed.
Answer the following statement true (T) or false (F)
________ is an economical way to inform large numbers of potential customers about a firm's products.
A. Pricing B. Advertising C. Encirclement D. Innovation E. Production
The purpose of marketing research is to
a. gain customers. b. identify customers. c. fulfill customer needs. d. develop new products.