McCafé Located Within McDonald's Exemplifies

question 6

Multiple Choice

McCafé located within McDonald's exemplifies:

• A)brand licensing.
• B)brand extensions.
• C)dual branding.
• D)co-branding.
• E)cooperative branding.

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Definitions:

Operating Leverage

A measure of how sensitive net operating income is to a given percentage change in revenue, indicating the proportion of fixed versus variable costs.

Income Statement

A financial report that shows a company's revenues, expenses, and profit or loss over a specific period.

Contribution Margin Ratio

The percentage of each sales dollar that remains after deducting variable costs, calculated as contribution margin divided by sales.

Net Operating Income

The profit of a business after operating expenses are subtracted from gross income.