Ethan Is an Operations Unit Manager for Morningstar Foods

question 83

Multiple Choice

Ethan is an operations unit manager for Morningstar Foods. So far in developing his monthly budget, he has identified the following costs: Overhead at $120,000; Packaging at $70,000; Advertising at $60,000; Salaries at $400,000; Food production at $90,000; and Distribution at $22,000. The fixed costs in this situation would be

• A) overhead, packaging, advertising, salaries, food production, and distribution.
• B) overhead, packaging, advertising, salaries, and distribution.
• C) overhead, advertising, distribution, and salaries.
• D) overhead, advertising, and salaries.
• E) overhead.

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Definitions:

Marketing Information System

A system that gathers, analyzes, and disseminates data relevant to a company’s marketing activities.

Demographic Segmentation

Dividing markets on the basis of various demographic or socioeconomic characteristics such as gender, age, income, occupation, household size, stage in family life cycle, education, or ethnic group.

Ethnic Group

A community or population made up of people who share a common cultural background or descent.

Household Size

The total number of individuals living in a single housing unit, often used in context of demographic data or eligibility for certain programs.