A 'Happy Hour' Offering Half Price Drinks Between 6:00 and 7:00

question 33

Multiple Choice

A 'happy hour' offering half price drinks between 6:00 and 7:00 every Friday is an example of a:

• A) Bilateral contract.
• B) Express contract.
• C) Implied contract.
• D) Unilateral contract.

---

Definitions:

Fixed Costs

Expenses that remain constant regardless of the business's production or sales activity, including insurance and lease payments.

Variable Cost

Expenses that vary directly with the production output, including costs of raw materials and direct labor.

Selling Price

The amount of money for which a product or service is sold to customers.

Contribution Margin Ratio

A financial metric that measures how effectively a company can cover its variable costs with revenue, calculated as contribution margin divided by sales revenue.