Michael Opened a New Bakery

question 22

Multiple Choice

Michael opened a new bakery. He had always admired the cute, friendly face of the Pillsbury Doughboy so as a tribute to Pillsbury, he decided to use it as his company's logo. Not long after Pillsbury sued him for:

• A) corporate liability.
• B) trademark infringement.
• C) profit minimization.
• D) patent infringement.

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Definitions:

Sales Volumes

The quantity of products or services sold by a company within a specific period.

Contribution Margin Per Unit

The difference between the selling price per unit and variable cost per unit of a product.

Operating Leverage

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

Net Operating Income

Net Operating Income is the total profit of a company after deducting operating expenses but before interest and taxes.