The Zappos brand relies on its excellent customer service across all its businesses to do what?
a. Create brand loyalty
b. Increase awareness of the brand name
c. Create a family brand
d. Offer an explicit warranty
Ans: a. Create brand loyalty
Business
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Jerry's Dog Food, Inc is a dog food wholesaler located in Greenwich, Connecticut. Selected financial statement values for Jerry's are shown in the table below
What is the degree of operating leverage for Jerry's given the change in revenues from Year 1 to Year 2? Jerry's Dog Food, Inc Year 1 Year 2 Revenues $170,000 $185,000 Cost of Goods Sold 140,000 148,000 SG&A 10,000 11,000 Depreciation 2,000 5,500 EBIT 18,000 20,500 A) 3.40 B) 1.57 C) 0.11 D) 1.00 E) 0.85
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