The following income statements are provided for two companies operating in the same industry: FelixCompanyJinxCompanyRevenue $200,000 $200,000 Variable costs (25,000) (70,000) Contribution margin 175,000 130,000 Fixed costs (70,000) (25,000) Net income $105,000 $105,000 Assuming sales increase by $1,000, select the correct statement from the following:
A. Only Felix will experience an increase in profit.
B. Felix's net income will be more than Jinx's.
C. Felix's net income will increase by $250.
D. Jinx's net income will increase by 6%.
Answer: B
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Answer the following statement true (T) or false (F)
Helen tells her nephew, Bernard, that she will pay him $100 if he will stop smoking for six months. Helen was hopeful that if Bernard stopped smoking for six months, he would stop altogether. Bernard stops smoking for six months but then resumed his smoking. Helen will not pay him. She says that the type of promise she made cannot constitute a binding contract and that, furthermore, it was at
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Which of the following is not one of the reasons why the use of sales promotion has increased dramatically in recent years?
A. Declining brand loyalty has fostered an environment in which sales promotions aimed at persuading customers to switch brands are more effective. B. Growing concerns about value have made customers more responsive to promotional offers, especially price discounts and point-of-purchase displays. C. Retailers have gained more power in the supply chain and are demanding stronger promotional efforts from manufacturers to boost retail profits. D. Wholesalers have gained more power in the supply chain and are demanding stronger promotional efforts from manufacturers to boost retail profits. E. A stronger emphasis on improving short-term performance results calls for greater use of sales promotion methods that yield quick (although perhaps short-lived) sales increases.
Determining if there are any duplicate customers in the data is an example of a unique characteristic of high-quality information.
Answer the following statement true (T) or false (F)