The Store Managers of Chimbake, a Chain of Bakeries, Are

question 96

Multiple Choice

The store managers of Chimbake, a chain of bakeries, are allowed to come up with new dessert flavors of their choice as long as they do not fall short of the company's quality standards. They are also allowed to come up with effective marketing strategies based on their respective market requirements. In the context of organizational authority, which of the following is best illustrated in this scenario?

• A) Centralization of authority
• B) Decentralization of authority
• C) Staff authority
• D) Concentrated authority

---

Definitions:

Break-even Point

The point at which total costs and total revenue are equal, meaning no net loss or gain is incurred by the business.

Contribution Margin Ratio

The percentage of each sales dollar that remains after variable costs have been deducted, indicating how much contributes towards fixed costs and profit.

Break-even Point

The Break-even Point is the level of production or sales at which the total revenue generated equals the total costs, indicating no profit or loss.

Target Profit

The specific amount of net income that a company aims to achieve within a certain time frame.