To Take Advantage of Ecotourism, a Resort Is Built near a Coral

question 106

Multiple Choice

To take advantage of ecotourism, a resort is built near a coral reef so that tourists can observe the spawning that occurs shortly after a full moon. As an added benefit, several species of colorful fishes are attracted to the area. Tour boats go out nightly and shine large spotlights to attract the fish. Tourists are enchanted by the display of fishes but have begun to question why spawning among the corals has ceased. What is the probable cause for the lack of spawning?

• A) The fish are releasing chemical signals that interfere with spawning among the corals.
• B) The fish are eating the spawn.
• C) Corals time their spawning by the phase of the moon; spotlights mimic the full moon, so spawning canʹt occur.
• D) The spotlights are causing the corals to spawn during the day rather than at night.
• E) The tourists are too loud.

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Definitions:

Contribution Margin Ratio

A ratio that measures the percentage of sales revenue available to cover fixed expenses and generate profit, calculated as the contribution margin divided by sales revenue.

Annual Fixed Expenses

Expenses that do not change in total regardless of changes in the volume of activity or production levels, such as rent or salaries.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, showing how much contributes to covering fixed costs and earning profit.

Break-even Point

The level of production or sales at which total revenues equal total expenses, resulting in no net profit or loss.