Question

15. Which of the following is a typical example of a variable cost? shipping costs b. rent on a building c. executive salaries d. insurance premiums 16. Forever Quilting is a small company that makes quilting kits priced at $120. The costs of the materials that go into each kit total $45. It costs $5 in labor to assemble a kit, The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising, and $4,500 for the monthly salary of its owner Forever Quilting's unit variable cost for its kits is a. $45. b. $50 c. $120. d. $170 17. Ampro-Mag is a small company that makes materials for safely controlling hazardous spills of all kinds. It sells these items as a neutralizing kit priced at $100. The costs of the materials that go into each kit are $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising in trade journals, and $3,500 for the monthly salary of its owner. What is Ampro-Mag's monthly break-even point in terms of number of neutralizing kits sold? a. 52 kits b. 104 kits c. 116 kits d. 520 kits 18. Companies often pursue a market share objective when a industry sales are flat or declining b. profits are increasing c. industry sales are beginning to rise d. stockholders are seeking higher dividends 19. Retailing is an important marketing activity. Not only do producers and consumers meet through retailing actions but retailing also creates a. b. C. d. the nation's largest source of tax revenues the largest source of charitable contributions limited utilities for consumers customer value 20. There are three key methods of classifying retail operations. These include: form of ownership, method of operation, and merchandise line. form of ownership, level of service, and merchandise line. level of service, merchandise line, and revenues generated. merchandise line, form of ownership, and revenues generated. a. b. c. d. 21. Consumers benefit in dealing with retail corporate chains because a. they can own stock in the same company where they shop since corporate chain stock must be publicly b. corporate chains can bargain with a manufacturer to obtain product volume discounts on orders, which traded can be passed on to consumers in terms of lower prices there are multiple outlets, each with its own varied merchandise and different management policies. merchandise is arranged and displayed by professional designers making their shopping experience les stressful c. d. 22. For what type of contractual system does a parent company provide assistance in selecting the location, setting up the store or facility, advertising, and training personnel? a. administered system b. conglomerate system C. franchise system d. retail-sponsored cooperative

Answer 1

Ans

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Shipping costs as they change with output 2. Unit variable cost = 45 + 5 = 50. Other costs doesn't change with output and are thus fixed. 3. Level of output is missing so, can't answer it 4. e. They try to reach as much customer as Possible