Which of the Following Is the BEST Example of the Micro-Macro

question 170

Multiple Choice

Which of the following is the BEST example of the micro-macro dilemma?

• A) Pepsi Blue sales went up, but total sales of all soft drinks went down.
• B) A small group of loyal consumers really like RC Cola best, but most consumers don't like it at all.
• C) The deposit on returnable soft drink bottles is about equal to the cost of the bottle.
• D) Paper cups for soft-drinks are convenient, but they often end up as litter along the highway.
• E) Snapple beverages are more popular in Texas than in the rest of the U.S.

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Definitions:

Fixed Monthly Expenses

Costs that do not vary in the short term, regardless of business volume or activity levels, and are incurred on a monthly basis.

Net Operating Income

The profit generated from a company's everyday business operations, calculated by subtracting operating expenses from revenue.

Contribution Format

A profit reporting format that separates fixed and variable costs, highlighting the contribution margin.

Total Contribution Margin

The total earnings available after variable costs have been deducted from revenue, used to cover fixed costs and contribute to profit.