Sam is a brand manager for Frito-Lay and he’s been asked to launch a new brand of chips to help grow their business. He believes there’s an opportunity to launch an organic chip that could resonate with health-conscious consumers. Sam is trying to identify the insight he can use to develop his positioning, so he spends several months conducting market research. He discovers the below findings. Which one is most likely an insight for Frito-Lay?

According to the lecture, what is true about services as part of the U.S. economy?

Emily runs a market research agency and she’s been hired by Meta to identify how their users actually engage with social media. They want to understand questions like what else are their users doing when they’re on social media and what activities trigger them to check social media, etc. What type of market research do you think would allow them to best understand this actual behavior?

According to the lecture, what allowed Wallick to offer their communities to customers at such a low price?

When faced with a competitor who has cut its product’s price, which of the following is the most cost-effective way for a company to maintain its own price but raise the perceived value of its offer?

During 2025, KM Construction sold 10,000 units, with beginning and ending units for the year of 1,000. Manufacturing costs were as follows: ​Variable FixedManufacturing costs per unit$11.00$7.00Operating costs (variable is per unit)$3.00$2.50Which of the following statements is true?

The capacity that could cause a downward spiral (or death spiral) is

Assuming the MOH allocation using the plant-wide rate you calculated in the previous question is correct and the information in Exhibit 1,  do you agree with Rio Vidal’s assessment that the ABC information is a beneficial planning and cost allocation basis for Agatha. Please explain your answer.

Hydro Flask makes premium water bottles, and they are thinking of launching a new water bottle with a self-sealing straw. The technology is considered breakthrough but the contribution margin on the new bottle is lower than the original Hydro Flask water bottle and the company is concerned that the new bottle will steal customers and sales from its original product and result in a lower overall contribution margin percentage. This concern relates to what concept?

Use the information in Exhibit 1 to answer the following four questions. Exhibit 1: Agatha Corp.   Agatha Corp. manufactures office supplies that it specifically creates for recent college graduates. One of their most popular items in recent years is the ‘Witches Road’ annual planner that is accompanied by accessories such as stickers, highlighters and spells. Agatha currently uses a single plant-wide rate of $14 per Direct Labor hour (DLH) to allocate their Manufacturing Overhead (MOH) costs. Rio Vidal, the controller, would like to determine whether a switch to Activity-Based Costing (ABC) would prove to be a beneficial planning tool for Agatha Corp. moving forward. Rio has identified three key activities that would be used for ABC: Production, Supervisor Wages, and Quality Inspections. Sarah has compiled the following budgeted MOH cost data for the annual planner: Activity Budgeted Cost Budgeted Quantity of Cost Driver Budgeted Activity Rate Production $309,870 30,000 machine hours $10.33 Supervisor Wages 98,946 4,668 hours $21.20 Quality Inspection 106,440 10,240 inspection hours $10.39 Total $515,256 ​ ​ The actual usage of resources for manufacturing the ‘Witches Road’ annual planner includes $27,360 in DM costs; 37,000 DL hours; 28,500 machine hours; 4,500 supervisor hours; and 9,800 inspection hours. The ABC allocated based on the previous information is $491,627, calculated as follows: Activity Calculation ABC Cost Production $10.33 per machine hour × 28,500 machine hours $294,405.00  Supervisor Wages $21.20 per hour × 4,500 hours 95,400.00  Quality Inspection $10.39 per inspection hour × 9,800 inspection hours 101,822.00  Total $491,627.00