Which of the Following Statements Is True of the External

question 96

Multiple Choice

Which of the following statements is true of the external environment with regard to developing a marketing mix?

• A) It is a standard variable that does not change.
• B) It does not give an accurate estimation of the target market.
• C) It is manually controlled to generate a marketing mix.
• D) It continually molds and reshapes the target market.

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Definitions:

Total Contribution Margin

The difference between sales revenue and total variable costs, indicating the amount contributing to covering fixed costs and profit.

Operating Leverage

The ratio of fixed costs to total costs. The higher a firm’s operating leverage, the greater will be the variability of profits for a given change in sales.

Income Tax

A tax levied by governments on individuals or entities based on their income or profits.

Reward System

Programs and strategies to recognize and compensate employees for their performance and contribution to the organization.