While Playing Soccer, Kyle Suddenly Fell and Broke His Arm

question 87

Multiple Choice

While playing soccer, Kyle suddenly fell and broke his arm. Needing to get to the hospital, he was not only interested in the nearest location, but also the shortest emergency room wait time. He remembered seeing a billboard for the Cleveland Clinic promoting their time-text service where he could call the number GET-TXT-TIME and they would text him the approximate waiting time at the closest three hospital locations. The Cleveland Clinic is providing enhanced service to its patients by capitalizing on which environmental force?

• A)Economic
• B)Competitive
• C)Political
• D)Legal and regulatory
• E)Technological

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.

Variable Selling Expenses

Expenditures that change in direct correlation with the amount of sales, like commission fees and delivery costs.

Fixed Selling Expenses

Costs related to selling that do not change with the level of sales, such as salaries of sales staff and rent for sales space.

High-Low Method

A technique in cost accounting used to estimate fixed and variable costs based on the highest and lowest levels of activity.