A Restaurant Has Two Menus, One Printed in English, and the Other

question 76

Multiple Choice

A restaurant has two menus, one printed in English, and the other printed in the local language.The prices on the English menu are double those on the other menu.The restaurant owners believe that if a customer cannot read the local language, he must be a tourist and will pay more.This is an example of:

• A)price fixing.
• B)price discrimination.
• C)predatory pricing.
• D)referral selling.
• E)resale price maintenance.

Explain the significance of fixed, variable, and mixed costs in decision-making.

Understand the use and importance of the cost-volume-profit (CVP) analysis for business decisions.

Calculate the margin of safety and understand its implications for business risk.

Interpret and perform calculations involving sales mix and the contribution margin of composite units.

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Definitions:

Negative Impact

Detrimental effects resulting from an event, action, or decision on an individual's or group's well-being or performance.

Stress

The physical or psychological response to internal or external stressors.

Humor

The quality of being amusing or comic, especially as expressed in literature or speech.

Systematic Problem-Solving

A step-by-step approach to addressing and resolving issues by identifying the problem, generating potential solutions, and implementing a chosen solution.