Which Is an Independent Variable in a Study Where Tractor

question 49

Multiple Choice

Which is an independent variable in a study where Tractor Supply, a retailer of garden and farming equipment, increases the price of its most popular lawn tractor by $5 every month for three months and sees its effect on market share in the Dallas metropolitan area?

• A) The variable being manipulated by the researcher to cause the change.
• B) $5 increase in retail price every month for three months.
• C) The variable affected by the change.
• D) Both a and b are correct.
• E) Changes on market share after 3 months.

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Definitions:

Gross Margin

Gross Margin is the difference between sales revenue and the cost of goods sold, expressed as a percentage of sales, indicating the efficiency of production and pricing.

Contribution Margin Income Statement

An income statement format that separates variable costs from fixed costs, focusing on contribution margin.

External Reporting

The provision of financial and non-financial information to external stakeholders, such as investors, creditors, and regulatory agencies, usually formal and standardized.

Fixed Manufacturing Costs

Expenses that do not change with the level of production, including things like rent for factory space and salaries of permanent staff.