Instruction 1-1 The Manager of the Customer Service Division of a Major

question 93

Multiple Choice

Instruction 1-1
The manager of the customer service division of a major consumer electronics company is interested in determining whether the customers who have purchased a DVD recorder made by the company over the past 12 months are satisfied with their products.
-Referring to Instruction 1-1,the population of interest is

• A)all the customers who have ever bought a DVD player made by the company.
• B)all the customers who have bought a DVD player made by the company over the past 12 months.
• C)all the customers who have used a DVD player over the past 12 months.
• D)all the customers who have bought a DVD player made by the company and brought it in for repair over the past 12 months.

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Definitions:

Net Operating Income

The profit realized from a business's operations after subtracting operating expenses from gross profit.

Sold Unit

Refers to a single unit of product that has been sold, representing a measure of the volume of sales transactions.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, influenced by the proportion of fixed costs to variable costs.

Variable Costs

Expenses that vary in direct relation to the amount of output or sales.