As Cultural Differences Become Less Relevant and Disposable Incomes Become

question 75

Multiple Choice

As cultural differences become less relevant and disposable incomes become high,a trend towards greater consumption of the following type of foods is predicted.

• A)French artistic foods
• B)American fast foods
• C)Chinese retail foods
• D)Indian spicy foods
• E)Mexican spicy foods

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Definitions:

Variable Cost

Expenses that vary directly with the level of production or sales volume, such as raw materials and direct labor.

Margin of Safety

The difference between actual or projected sales and the break-even point, indicating the amount by which sales can drop before reaching a loss.

Break-even Point

The point at which total cost and total revenue are equal, resulting in neither profit nor loss.

Break-even Sales

The amount of revenue required to cover total costs, both fixed and variable, at which point a business neither makes a profit nor suffers a loss.