When Coca-Cola Was Accused of Deliberately Trying to Poison Consumers

question 97

Multiple Choice

When Coca-Cola was accused of deliberately trying to poison consumers in India by selling them soft drinks allegedly containing 27 times the maximum amount of pesticide that is permissible, Coke ran ads in national newspapers describing how much care it takes to guarantee the safety of the products it produces. What were these ads examples of?

• A)advocacy advertising
• B)selective advertising
• C)product advertising
• D)image advertising

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Definitions:

Break-even Point

The point at which total costs and total revenue are equal, resulting in no net gain or loss for a business.

Contribution Margin

Contribution margin is the amount of revenue remaining after deducting the variable costs of producing a product, indicating how much contributes to covering fixed costs and generating profit.

Variable Costs

Costs that fluctuate based on the level of a business’s activity.

Total Direct Labor Cost

The total expenses incurred from labor directly involved in the production of goods or services.