Antoine rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20, to cover maid service and utilities. His fixed costs are $100,000 and his profit last year was $20,000. For Antoine, the contribution per unit is

A. $100
B. $40
C. $800
D. $1,000
E. $80

Answer : E. $80

Business

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A Toronto-based catalogue retailer features cast-iron skillets. Its customers in New Brunswick are charged one shipping rate, and customers in B.C. are charged a different rate. Customers in Quebec are charged yet another rate. What kind of geographical pricing is the catalogue using?

a. zone pricing b. FOB origin pricing c. freight absorption pricing d. FOB factory

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Audiences react differently to different media, therefore

A) MPR professionals need to create one overall message for all media. B) not all connectors are appropriate channels for delivering an MPR message. C) psychographic data cannot be trusted as being completely accurate. D) television advertising is the most reliable and inexpensive way to target a message. E) MPR professionals should put more effort into personal sales to promote products.

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