The Following Information Pertains to the Northwest Territory of Burger

question 148

Multiple Choice

The following information pertains to the Northwest Territory of Burger King Company: $\begin{array}{lr}\text { Net Sales } & \$ 6,000 \\\text { Variable costs: } & \\\text { Cost of merchandise sold } & 1,200 \\\text { Operating expenses } & 450 \\\text { Fixed costs: } & \\\text { Controllable by segment manager } & 1,600 \\\text { Controllable by others } & 1,250 \\\text { Unallocated costs } & 750\end{array}$ The contribution margin is _____.

• A)$2,750
• B)$3,650
• C)$4,350
• D)$2,500

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Definitions:

Premiums

Items offered for free or at a reduced price as an incentive to purchase a product or to reward loyal customers.

Sales Promotion Expenditures

The financial investment allocated towards marketing strategies and campaigns designed to increase immediate consumer demand and stimulate sales of a product or service.

Consumer-Oriented Sales Promotions

Marketing strategies aimed at inducing consumers directly to purchase products through methods such as coupons, discounts, and contests.

Coupons

Vouchers or codes that offer a discount or deal, used as a promotional strategy to encourage consumers to try a product or service.