Inside the Packaging of a Calphalon Coffee Maker, Ginger Finds

question 104

Multiple Choice

Inside the packaging of a Calphalon coffee maker, Ginger finds a paper stating, "All our products will be replaced within the first year if they fail to operate correctly. However, consumer misuse or abuse will effectively end this policy." This is a(n)

• A) label.
• B) set of instructions for use.
• C) statement of guarantee.
• D) implied warranty.
• E) express warranty.

---

Definitions:

Operating Leverage

A measure of how a company's operating income responds to a change in sales volume, indicating the proportion of fixed versus variable costs.

Variable Costs

Expenses that vary based on the amount of products or services a company generates.

Break-Even Number

The quantity of products or services a business needs to sell to cover its costs, without making a profit or a loss.

Passenger

An individual who travels in a vehicle, aircraft, or vessel, but does not operate it or work as part of the crew.