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A Coffee Shop Uses an Online System to Engage Customers

question 37

Multiple Choice

A coffee shop uses an online system to engage customers. After each transaction, customers receive a text asking them to rate their experience with either a smiley, neutral, or sad face emoji. This practice is an example of ________ control.


Definitions:

Contribution Margin

The difference between sales revenue and variable costs of a product or service, indicating the amount contributed towards covering fixed costs and generating profit.

Financial Break-even Point

The level of revenue necessary for a firm to cover all its operating expenses and financial costs, achieving a net income of zero.

Gross Profit

The financial gain obtained after deducting the cost of goods sold from sales revenue, before subtracting any operating expenses.

Net Present Value

It's the calculation of the present value of all cash entering minus the present value of all cash exiting over a certain period.

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