The Local Bakery Makes Such Great Cinnamon Rolls That Consumers

question 162

Multiple Choice

The local bakery makes such great cinnamon rolls that consumers do not respond much at all to a change in the price.If the owner is only interested in increasing revenue,she should

• A)lower the price of the cinnamon rolls.
• B)leave the price of the cinnamon rolls unchanged.
• C)raise the price of the cinnamon rolls.
• D)reduce costs.

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Definitions:

Asset Data

Refers to the collection of information related to a company's assets, including physical assets and financial assets.

Allocation Bases

Criteria or bases used to distribute costs among different departments, products, or activities in a fair and efficient manner.

Salaries

Regular payments made by an employer to an employee, usually on a monthly or biweekly basis, in exchange for work performed.

Administration Expenses

Expenses related to the general operation of a business that are not directly tied to the production or sale of goods or services, such as office supplies and salaries of administrative personnel.