Which of the Following Is a Disadvantage of Using Newsletters

question 60

Multiple Choice

Which of the following is a disadvantage of using newsletters as an advertising medium?

• A) low audience selectivity
• B) high chances of runaway costs
• C) lack of adequate control
• D) relatively high costs
• E) lack of interactive possibilities

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs and generating profit.

Fixed Costs

Costs that do not vary with production or sales levels, including rent, insurance, and salaries, which remain constant regardless of business activity levels.

Operating Income

The profit realized from a business's operations, calculated by subtracting operating expenses from gross profit.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance premiums.