A regional restaurant chain spends $90,000 for a local television advertising campaign that delivers $450,000 in incremental revenue
If the incremental contribution margin based on the incremental revenue for this campaign is 75%, then how much would the program return for each additional marketing dollar invested?
A) $2.70
B) $3.00
C) $3.75
D) $5.00
E) $7.50
C
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Both Lemon Light, Inc, and Orange Mist Corporation are soft drink distributors in Capital City
The soft drink business is highly competitive, profit margins are razor thin, and both companies are on the brink of bankruptcy. To save themselves, they agree to not sell soft drinks at a price below $3 per six-pack. This is a fair price; it allows both of them to make a fair profit; and the customers still get a relatively inexpensive drink. This action by Lemon Light and Orange Mist is: A) Legal, because they set a fair price. B) Legal, because they did not set an absolute price, but only set a minimum price. C) Legal, because they were on the brink of bankruptcy. D) Illegal, because it is vertical price fixing. E) Illegal, because it is horizontal price fixing.
Sheila believes the value of her employees' performance depends on her agenda or goals, and not on any objective standard. Sheila's perspective is a(n):
A) rational perspective. B) absolute perspective. C) political perspective. D) relative perspective.