The Following Information Pertains to the East Division of Saturn

question 47

Multiple Choice

The following information pertains to the East Division of Saturn Company: Variable costs:
Fixed costs:
The contribution margin is ________.

• A)$7,100
• B)$7,700
• C)$8,000
• D)$8,700

---

Definitions:

Disadvantages

The negative or less favorable aspects of a situation, decision, or business strategy.

Franchisor

A business entity that allows individuals or other businesses to operate a location or outlets under its brand name, providing a business model, brand, and support in exchange for fees and adherence to its operational guidelines.

Loss Of Control

The reduction or elimination of an individual's or entity's power to make decisions in a company or over its assets.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.