Amy Sims Has Been Assigned the Task of Preparing a Marketing

question 55

Multiple Choice

Amy Sims has been assigned the task of preparing a marketing plan for her company for the next year's business activities. She knows that she should begin her plan by examining the variables that she has some control over. These controllable variables would include price, product, channels-of-distribution, and _____.

• A) demand
• B) political forces
• C) competition
• D) economic climate
• E) promotion

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Definitions:

Variable Costs

Expenses that change in proportion to the activity or volume of production, sales, or services rendered.

Fixed Costs

Charges that are unaffected by production or sales volume, for example, monthly rent or payroll expenses.

Selling Price

The price at which a product or service is offered to customers.

Contribution Margin Ratio

The percentage of sales revenue that exceeds variable costs, indicating the portion of sales available to cover fixed costs and generate profit.