Two Firms, STM and VPL, Have the Same Contribution Margin

question 60

Multiple Choice

Two firms, STM and VPL, have the same contribution margin however VPL's fixed costs (including interest) are greater than STM's.The sales levels and income tax rates of the two firms are the same.We would expect:

• A)VPL's income to have the same variability as STM
• B)VPL's income to be less variable than STM
• C)VPL's income to be more variable than STM
• D)Can't determine with the information provided

Identify key financial indicators and ratios used by creditors to evaluate creditworthiness.

Understand the importance of collateral in secured loans and the repercussions of default.

Recognize the rights and procedures for disputing inaccurate information in credit reports.

Understand the role and impact of federal consumer credit laws on credit accessibility and discrimination.

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Definitions:

Positive Associations

The beneficial connections or relationships customers make between a brand or product and their personal perceptions or experiences.

Semantic Scales

A type of survey rating scale that uses words rather than numbers to identify the distance between points on the scale, often used in measuring attitudes or perceptions.

Perceptual Maps

A visual representation used in marketing to display customers' perceptions of a brand or product in comparison to its competitors on various attributes.

Customer Value Maps

A visual or graphical representation of the value that customers derive from a product or service compared to its competitors.