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Refer to the Passage Below to Answer the Questions That

question 70

Multiple Choice

Refer to the passage below to answer the questions that follow.
Everyone knows McDonald's, the worldwide fast food chain. McDonald's has used consumer promotions for years. Restaurants offer a kids' Happy Meal that always includes a toy, and oftentimes the package itself is a promotion, such as pumpkin buckets at Halloween. McDonald's has also used a promotion patterned after the popular Monopoly game, in which everyone wins something small, like a soft drink or french fries, but one participant could win $1 million dollars. The Monopoly promotion usually lasts several months. McDonald's also participates in promotions with movies, such as Star Wars and several Disney movies. Another promotion McDonald's is considering is a program that will give consumers one free Happy Meal for every 10 they purchase.
-What type of premium is the Happy Meals pumpkin bucket?

Definitions:

Fair Value

The estimated market price of an asset or liability, reflecting the amount for which it could be exchanged or settled between knowledgeable parties in an arm's length transaction.

Book Value

This is the net value of a company's assets minus its liabilities, as recorded on the balance sheet.

FIFO Inventory Method

An inventory valuation method where the first items acquired are the first ones sold, used to determine the cost of goods sold and ending inventory.

Net Income

Net income is the total earnings of a company after subtracting all expenses, including taxes, costs, and losses, from its total revenue, indicating its profit.