Which of the Following Was NOT Listed as One of the Main

question 30

Multiple Choice

Which of the following was NOT listed as one of the main reasons that spurred the development of the spa industry?

• A) Individuals are getting older
• B) There is more disposable income in families
• C) Individuals are living more luxurious and healthier lifestyles
• D) People are concerned with their personal appearance to remain youthful
• E) Resorts started to add spas to their property in order to not be at a competitive disadvantage

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Definitions:

Unit Contribution Margin

The amount each unit sold adds to profit, calculated by subtracting variable costs associated with a product from the sales price per unit.

Break-even Point

The juncture where total expenses match total income, resulting in neither a net profit nor a loss.

Fixed Expenses

Costs that do not change with the level of production or sales, remaining constant over a specified period.

Contribution Margin Ratio

A financial metric that measures the proportion of revenue remaining after variable costs have been deducted, indicating how much revenue is available to cover fixed costs and generate profit.