When Pizza Hut Announced It Was Going to Add 25

question 246

Multiple Choice

When Pizza Hut announced it was going to add 25 percent more toppings to its Meat Lover's Line of pizzas without increasing the price, what consumer motivation was it appealing to?

• A)cost
• B)appearance
• C)tangibles
• D)value
• E)prestige

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Definitions:

Markup

The amount added to the cost of goods to cover operating expenses and profit, expressed as a percentage of cost.

Direct Labor-Hours

Direct labor-hours refer to the total hours worked by employees directly involved in the production process, used as a basis for allocating labor costs to products.

Machine-Hours

The total hours that machinery is operated during a specific period for production purposes.

Departmental Predetermined Overhead Rates

These rates are calculated to allocate manufacturing overhead costs to specific departments, based on estimated or actual overhead and activity levels.