Which of the Following Characteristics Is Most Likely to Be

question 103

Multiple Choice

Which of the following characteristics is most likely to be the more sustainable competitive advantage?

• A) Extended hours of operation
• B) Bigger warehouses
• C) Ability to get scarce merchandise
• D) More employees
• E) Greater assortment of merchandise

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Definitions:

Contribution Margin Ratio

The ratio of contribution margin to sales revenue, used to measure the profitability and efficiency of a product or service.

Margin Of Safety

The difference between the actual or expected profitability of a project and the break-even point. It is a cushion against uncertainty.

Net Operating Income

The profit generated from a company's everyday operations, calculated by subtracting operating expenses from operating income.

Contribution Margin

The difference between sales revenue and variable costs of a product or service, indicating the amount contributing to covering fixed costs and generating profit.