When Does Increased Customer Value Occur

question 23

Multiple Choice

When does increased customer value occur?

• A)when the customer receives more benefits
• B)when the customer perceives a greater gap between benefits and sacrifice
• C)when customer costs are reduced
• D)when customer prices are increased

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Definitions:

Break-even Point

The production level at which total revenues equal total expenses, and there is neither profit nor loss.

Contribution Margin Ratio

A financial metric that shows the percentage of sales revenue that exceeds variable costs, contributing to covering fixed costs and generating profit.

Profit-volume Ratio

A measure that indicates the relationship between the profit generated by a business and its sales volume, usually expressed as a percentage.

Property Tax Rates

The percentage at which local governments tax the value of real estate properties.