Which of the Following Is True About Over-The-Counter (OTC) Drugs

question 31

Multiple Choice

Which of the following is True about over-the-counter (OTC) drugs?

• A) They are safer than prescription drugs.
• B) They can be obtained without a prescription.
• C) They have no side effects.
• D) It is not possible to overdose on them.

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Definitions:

Contribution Margin

The contribution margin is the amount by which the sales revenue of a product or service exceeds its variable costs, indicating how much contributes to covering fixed costs and generating profit.

Selling Price

The amount of money customers pay for a product or service.

CVP Model Assumptions

Assumptions underlying the Cost-Volume-Profit analysis, including constant unit selling prices, variable costs per unit, and total fixed costs.

Product Mix

The variety of products a company offers to its customers, encompassing breadth, depth, and diversity of the product lines.