Jonas Works for the Local Charity

question 26

Multiple Choice

Jonas works for the local charity. His job is to raise as much money as he can by calling people on the phone and telling them about the charity. Jonas is also a psychology student and has just learned of the compliance techniques that could help him raise more money for his charity. He decides to call and ask for just $5. When the person agrees, he tells of all of the work the charity does and how the charity is run mostly by donations from others. After that, he asks that the person give $15 as opposed to $5. He is delighted when many of the folks agree to the larger amount. Jonas is using _____

• A)the social norms technique.
• B)the low-ball technique.
• C)the door-in-the-face technique.
• D)the foot-in-the-door technique.

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Definitions:

Margin Of Safety

Indicates the possible decrease in sales that may occur before an operating loss results.

Variable Costs

Costs that change in proportion to the level of activity or production volume.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums, remaining constant regardless of activity levels.

Break-Even Point

The juncture where the cumulative expenses equal total income, yielding neither a profit nor a loss.