Sales Promotion Involves Building Up a Good Corporate Image, and Handling

question 124

True/False

Sales promotion involves building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.

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Definitions:

Unit Contribution Margin

The dollars available from each unit of sales to cover fixed costs and provide operating profits.

Break-Even Point

The level of operations at which a company’s revenues and expenses are equal.

Contribution Margin Ratio

A financial metric that measures a product's profitability by calculating the difference between its sales and variable costs as a percentage of total sales.

Fixed Costs

Expenses that do not change with the level of production or sales over a certain range and time period.