A)McDonald’s offered toys that portrayed the characters in themovie The Incredibles for free with the purchase of aHappy Meal. The giving away of these toys is an exampleof the use of what type of promotional tool?
A options:
| Sweepstake |
| Deal |
| Rebate |
| Allowance |
| Premium |
B)
Which of the following is a commonly used pricing strategy thatinvolves payment to an intermediary for promoting a manufacturer’sproducts?
B options:
| Price bundling |
| Zero percent financing |
| Quantity discount |
| Promotional allowance |
| Seasonal discount |
C)
A __________ contains specific goals assigned to a salesperson,sales team, branch sales office, or sales district for a statedtime period.
C options:
| last year/current year sales ratio report |
| sales call report |
| sales quota |
| selling expense report |
| income statement |
D)
Jane Caplow owns a picture-framing shop, The CaplowCompany. The average price she receives for a pictureshe frames for a customer is $120. This price must coverher average costs for a typical framed picture of $5 for glass, $2for matting, and $13 for the frame, and $30 for the laborinvolved. She must also cover monthly expenses of $1,000for rent and insurance, $200 for heat and electricity, $500 foradvertising, and $3,500 for her salary. Caplow isconsidering buying an automatic mat-cutting machine inorder to reduce the number of hours of direct laborrequired to produce a framed picture. In consideringthis purchase, she should recognize this purchase will _____Caplow's variable cost and _____ Caplow's fixed cost.
D)
| increase; decrease |
| have no effect on; have no effect on |
| decrease; increase |
| increase; increase |
| decrease; decrease |
E)
Which of the following is a typical example of a fixed cost?
E)
| hourly wages |
| sales commissions |
| production goods |
| raw materials |
| building rental expense |
