Which of the Following Does the Federal Trade Commission Require

question 17

Multiple Choice

Which of the following does the Federal Trade Commission require if a company wishes to claim that its products are "Made in the U.S.A."?

• A) That the claim not be used unless all, or virtually all, of the product's components and labor are of U.S. origin.
• B) That the claim not be used unless absolutely all of the components and labor of the product are of U.S. origin.
• C) That the claim not be used unless at least 75% of the product's components and labor are of U.S. origin.
• D) That the claim not be used unless at least 50% of the product's components and labor are of U.S. origin.
• E) That the claim not be used unless at least 55% of the product's labor and components are from Canada, Mexico, or the United States.

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Definitions:

Contribution Margin

The sum left over from sales income once all variable costs are subtracted.

Fixed Expenses

Costs that do not change with the level of production or sales over a certain time period, such as rent, insurance, and salaries.

Break Even

A situation where the overall expenses match the overall income, causing zero net profit or loss.

Target Profit

The predetermined amount a business aims to earn over a specific period, used for planning and performance evaluation.