If Your Fixed Costs (Including Marketing, Advertising, R&D, Depreciation, Etc

question 8

Multiple Choice

If your fixed costs (including marketing, advertising, R&D, depreciation, etc.) are high relative to variable costs (which include labor or unit components) , the strategic objective is to

• A) maximize per unit margins.
• B) eliminate advertising.
• C) maximize sales volume.
• D) raise the price as much as possible.

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Definitions:

Ribosomes

Cell organelles that function as the site of protein synthesis in the process of translation.

Endoplasmic Reticulum

A network of membranes within a cell, involved in protein and lipid synthesis.

Golgi Bodies

Membrane-bound organelles in eukaryotic cells that process, sort, and package proteins and lipids for transport.

Modification

A change or alteration, usually to improve something or to adjust it to different conditions.