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Scenario 9.2 Use the Following to Answer the Questions

question 8

Multiple Choice

Scenario 9.2
Use the following to answer the questions.
Regardless of their age, income, or gender, an increasing number of people are turning to the Internet to search for information, products, people, news, maps, entertainment, and whatever else you can think of. At the forefront of this massive search is Google; accompanying Google are social media sites such as Facebook, Twitter, and Pinterest. Google has developed methods for making information useful to all types of Internet users. Some users want to critique the information, some just want to read the information, and some want to be the information writers. Facebook, originally used as a social networking application, is now picked up by retailers, brands, celebrities, churches, political campaigns, and non-profit agencies who are designing Fan Pages. Twitter is a more real-time site and, as is Pinterest, a more personally-affiliated medium.
-Refer to Scenario 9.2. If the Morningside Church wants to provide its members with a venue to read what other people think about its ideas, worship style, and community services, and to share their own ideas, it could use . Those who would most likely want to simply read the opinions of others are , while those who would like to also share their own ideas, are .

Definitions:

Fixed Expenses

Expenses that do not change with the level of production or sales within a certain range and period, such as rent, salaries, and insurance.

Break-Even Sales

The amount of sales revenue needed to cover all fixed and variable costs, resulting in no profit or loss.

Variable Production Costs

Costs that fluctuate directly with the level of output, including materials, labor, and other expenses that vary with production volume.

Fixed Cost

Expenses that remain constant in total regardless of changes in the level of production or sales volume, such as rent, salaries, and insurance.