With Respect to Price,which of the Following Type of Consumer

question 155

Multiple Choice

With respect to price,which of the following type of consumer product is most likely be very expensive?

• A)convenience product
• B)shopping product
• C)discretionary product
• D)specialty product
• E)unsought product

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Definitions:

Residual Income

The net income an enterprise or project generates above its cost of capital or required rate of return.

Contribution Margin Ratio

A calculation that shows what percentage of sales revenue is available to cover the fixed costs of a business after variable costs have been paid.

Fixed Expenses

Costs that remain constant regardless of any change in a company's activity level, such as lease payments, insurance, and property taxes.

Sales

Represents the total income generated by a company from selling goods or services before any expenses are subtracted.