Refer to Scenario 9

question 226

Multiple Choice

Refer to Scenario 9.9 below to answer the question(s) that follow.
SCENARIO 9.9: Sponsors invest $250,000 in a new greeting card business on the promise that they will earn a return of 10% per year on their investment. The business sells 52,000 greeting cards per year. The fixed costs for the business include the return to investors and $79,000 in other fixed costs. Variable costs consist of wages ($1,000 per week) plus materials, electricity, etc. ($3,000 per week) . The business is open 52 weeks per year.
-Refer to Scenario 9.9. The annual fixed costs for the business sum to

• A) $25,000.
• B) $79,000.
• C) $104,000.
• D) $208,000.

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Definitions:

Purchase Intent

A measure or indication of a consumer's likelihood to buy a product or service in the near future.

Triple Bottom Line

Framework with three parts: social, environmental, and financial; also referred to as the 3Ps: people, planet, and profit.

Corporate Social Responsibility

A business model that helps a company be socially accountable to itself, its stakeholders, and the public, often focusing on environmental, economic, and social impact.

Corporate Social Responsibility

The commitment of a business to contribute to sustainable economic development and improve the quality of life of the workforce, their families, the community, and society at large.