Scenario 1-4 At Sam-Mart, a Huge Discount Retailer, Sales Are Around $70

question 66

Multiple Choice

Scenario 1-4
At Sam-Mart, a huge discount retailer, sales are around $70 billion a year and rising. In addition, the company employs more than 500,000 people worldwide. Sam-Mart stores carry just about every major brand imaginable. In addition, Sam-Mart carries its own brand called Wally's Choice. The Wally's Choice label is on products like cookies, potato chips, paper towels, and other personal and household products.
-(Scenario 1-4) In a local newspaper, Sam-Mart purchases and runs a message that does not refer to any of the products it carries. Instead, it mentions that employees of the local Sam-Mart contribute both the store's resources and their own free time to community projects. This is an example of

• A) a message designed to persuade.
• B) a public service announcement.
• C) delayed response advertising.
• D) corporate advertising.

---

Definitions:

Activity Levels

Refers to the quantity of work performed or production completed in a business within a specific period.

Target Sales Volume

The specific quantity of products a company aims to sell within a certain period to achieve its sales objectives and ensure profitability.

Fixed Costs

Expenses that remain constant regardless of how much is produced or sold, including items like rent, salaries, and insurance.

Unit Contribution Margin

The difference between the selling price per unit and the variable costs per unit, which contributes towards covering fixed costs and generating profit.