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While Eating Dinner One Evening,you Receive a Phone Call from a Telemarketing

question 46

Multiple Choice

While eating dinner one evening,you receive a phone call from a telemarketing firm.The firm's representative informs you that your name is one of only five names drawn in a recent lottery.Each of the five people will receive a prize.In order to claim your prize,however,you must visit Summer Resorts,Inc.the following Friday (with no commitment to purchase anything) ,take a 90 minute tour of their facilities,and,at that time,your prize will be awarded.In order to visit Summer Resorts,Inc.the next Friday,you would have to miss 8 hours of work ($15 per hour) ,pay for the gas to drive there and back home ($20) ,and buy lunch ($10) .Because you won't go to work that day you won't have to pay the $3 for gas to drive to and from work,nor pay to park,for which you have a monthly pass that costs $50.Using cost-benefit analysis,you determine that it is rational for you to visit Summer Resorts,Inc.if the prize has a minimum value to you of

Analyze the impact of changes in sales volume, costs, and prices on business profitability using CVP concepts.

Compute the contribution margin per unit and the contribution margin ratio to assess product profitability.

Determine the sales volume required to achieve a target operating income or profit.

Understand the effect of fixed and variable costs on operating leverage and profit potential.

Definitions:

Boundaries

The defined limits or edges that separate or distinguish differences in roles, physical space, or psychological comfort zones.

Long-term Groups

Groups or teams that are assembled for extended periods to work on ongoing projects or objectives.

Life Transitions

Significant changes in one's life that require adjustment, such as moving, changing jobs, getting married, or experiencing loss.

Dropouts

Individuals who discontinue their engagement or participation in a program, course, or activity before completion.