Exodus Moving is a small business that was created to serve local furniture stores' delivery needs in the Boulder Colorado area. They have specialized equipment that allows them to lift and transfer large, bulky pieces of furniture with less risk of damage than most traditional movers. Many of these furniture stores do not sell enough volume to keep their own trucks and drivers busy all of the time, so Exodus fills a real market need. As a result, most such stores are very interested in outsourcing delivery service needs. Exodus has attracted many customers from these stores by guaranteeing 48 hour delivery within a 50 mile radius of any of the stores they serve. Eventually, Exodus hopes to attract the business of other retailers who might require delivery services. Exodus has launched a new camping equipment line which it has promoted on local television networks and magazines. This is an example of:
a. corporate advertising.
b. a primary demand stimulation.
c. direct response advertising.
d. a selective demand stimulation.
Question 2
The breakeven point is calculated by dividing the sum of
a. the total fixed costs and shared costs by the difference between the price and the unit variable cost.
b. the total variable costs and shared costs by the difference between the price and the unit fixed cost.
c. the total fixed costs and variable costs by the difference between the price and the unit shared cost.
d. the total shared costs by the difference between the price and the sum of the total fixed costs.
e. the total fixed costs and shared costs by the difference between the price and the sum of the total variable costs.
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