A Grocery Store Wants to Encourage Its Customers to Bring

question 91

Multiple Choice

A grocery store wants to encourage its customers to bring their own shopping bags,thus saving the store money on purchasing plastic or paper bags and saving the environment in the process.For an Earth Day promotion,the store gives away free canvas bags and engages in a substantial advertising campaign to highlight the initiative.Then,the store rewards customers who bring their own bags with a 5% discount on all future shopping trips.Which of the following is not a way this initiative might be reflected in the grocery store's contribution margin income statement?

• A)It wouldn't be.Contribution margin income statements do not currently support sustainability accounting.
• B)The store's fixed costs would increase to account for the promotional materials and the fixed costs of providing free bags to customers.
• C)The store's sales revenue would decrease to reflect the discounts given to customers who bring their own bags.
• D)The store's variable costs would decrease to reflect the reduced cost of providing paper or plastic bags to all customers.

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Definitions:

Time Estimates

The approximation of the amount of time needed to complete tasks or projects, often used in planning and scheduling.

Probabilities

A measure or estimation of how likely it is that an event will occur, expressed as a number between 0 and 1.

Generating Alternative Solutions

The process of identifying multiple potential responses or strategies to address a given problem or challenge.

Implementing A Solution

The process of putting into action or executing a method for resolving a problem.