If a company has a positive contribution margin but net operating income is low or negative, what are some ways of increasing net operating income?
A) Increase sales price
B) Increase sales volume
C) Decrease variable costs
D) All of these are ways to increase net operating income
D
You might also like to view...
In global marketing research, it is important to establish scalar equivalence when obtaining information from different countries
Indicate whether the statement is true or false
Which of the following best describes the goals of persuasion?
A) Attempting to get the audience to purchase your product B) Attempting to change an audience's attitudes, beliefs or actions C) Presenting the audience with a choice D) Using a neutral buffer to attract the people to the product E) Using the indirect format to have people change their minds now, or at some point in the future
Which ratio would you use to examine a company's ability to pay its debts in the short-term?
A. Acid-test ratio B. Debt to assets ratio C. Earnings per share D. Return on equity
Scenario 1.1 Use the following to answer the questions. ? Greensprings Cemetery in upstate New York offers a full-service funeral and burial that is non-toxic to the environment. All materials used in the burial are natural and will decompose with no negative impact. Greensprings' service is relatively new in the United States, but services of this type are common in Great Britain. A typical burial in Greensprings' cemetery includes a casket made from bamboo, wicker, paper, or other natural material. There are no headstones of stone or concrete that will detract from the landscape, but trees and plants as "markers" are allowed. The cost for a burial at Greensprings is approximately $3,000, compared to about $6,000 at most traditional cemeteries. Although business was slow at first,
Greensprings is now experiencing an increase in the number of burials, due to referrals and a newly-developed website. The owners of Greensprings were previously in the cemetery business, and are active conservationist and wanted to make their business more sustainable. After conducting research and finding that there were natural burial sites in Great Britain, they wanted to provide an alternative to other environmentally-conscious Americans like themselves. Refer to Scenario 1.1. A new website has helped Greensprings' pre-planned funeral business grow. This would come under which of the following marketing mix variables? A. Product B. Price C. Distribution D. Promotion E. Promotion and price