Question detail
PixelPrint serves commuters while opening a second outlet; the case evidence includes net profit margin of ?11,177, sales of 382 units, and a 40% change in costs or demand. Which option best applies Distinguish variable costs, fixed costs and total costs?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Business planning
Question
- A. Use variable costs, total costs, fixed costs to judge customer retention, local community impact, and the business objective in Basic financial terms.
- B. Give only a definition of Business planning without using the case evidence.
- C. Treat margin and markup as identical and ignore the effect on local community.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use variable costs, total costs, fixed costs to judge customer retention, local community impact, and the business objective in Basic financial terms.
Explanation
The answer is commercially strongest because Use variable costs, total costs, fixed costs to judge customer retention, local community impact, and the business objective in Basic financial terms. The case evidence gives ?12,677, 382 units, and 40%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse margin and markup, miss the local community, or ignore the business objective.
Common mistake
Basic financial terms common mistake 1
Giving a vague answer instead of directly addressing: Distinguish variable costs, fixed costs and total costs..
Answer by clearly explaining how to distinguish variable costs, fixed costs and total costs..
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