Scenario 14.1 Use the Following to Answer the Questions

question 145

Multiple Choice

Scenario 14.1
Use the following to answer the questions.
The Pillsbury division of General Mills has promoted its baking products through its trade character,the Pillsbury Doughboy,since 1965.He appears in television commercials touting the quality,benefits,and features of the products Pillsbury sells.Each product in the Pillsbury line,such as crescent rolls,pizza dough,biscuits,and cinnamon rolls,includes the Pillsbury name on the package.In addition to the Pillsbury name,the Pillsbury Doughboy also appears on each package,although in different poses.On the Pillsbury website,the Pillsbury Doughboy character is animated and can be seen "dancing".He can be downloaded to your personal computer or used to create your own e-card.
-Refer to Scenario 14.1.The Pillsbury brand name would be characterized as a ____ brand.

• A)private
• B)manufacturer
• C)store
• D)generic
• E)dealer

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Definitions:

Contribution Margin Ratio

The contribution margin ratio is the percentage of each sales dollar remaining after deducting variable expenses, indicating how much of each dollar contributes to fixed expenses and profit.

Operating Leverage

An indicator of the way in which growth in revenue results in an increase in operating profit, revealing the ratio of fixed to variable expenses within a business.

Net Operating Income

The total profit of a company after operating expenses are deducted, but before taxes and interest payments.

Sales Increase

It refers to the upward change in the number of products sold or the value of sales over a specific period.