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:

Semi-Skilled Professionals

Workers who possess some skills and training for their jobs but do not require the advanced education or extensive experience typically necessary for specialized professional roles.

Visible Minorities

Groups of people who are not of the majority race in a specific country or community, often recognized by their distinct physical characteristics.

Employment Equity Groups

Designations for specific populations identified for targeted employment policies, intended to ensure equal opportunities and representation in the workforce.

Strategic Incorporation

The process of integrating strategic initiatives and objectives into the wider organizational processes and culture.