You Are Holding Two Focus Groups to Discuss College Savings

question 31

Multiple Choice

You are holding two focus groups to discuss college savings plans with parents of teenagers.You want to talk with individuals whose income ranges from $20,000 to over $100,000 annually.What would be the best course of action with regard to group composition?

• A)Have the first group consist of individuals with incomes between $20,000 and $30,000; have the second group consist of individuals with incomes between $90,000 and $100,000.
• B)Have both groups consist of a mix of individuals who have incomes between $20,000 and $100,000.
• C)Have the first group consist of individuals with incomes between $20,000 and $50,000; have the second group consist of individuals with incomes between $60,000 and $100,000.
• D)Have both groups consist of individuals who have incomes between $85,000 and $100,000.

---

Definitions:

Fixed Costs

Expenses that do not change with the level of goods or services produced over a short period.

Operating Cash Flow

A measure of the amount of cash generated by a company's normal business operations, indicating whether a company can generate sufficient positive cash flow to maintain and grow its operations.

DOL

Degree of Operating Leverage, which measures a company's sensitivity of operational income to its sales levels, indicating the proportion of fixed versus variable costs.

Accounting Break-Even

The point at which total revenues equal total expenses, resulting in neither profit nor loss.