Restate the following income statement for a retailer in contribution format. Sales revenue ($100 per unit) $ 98,000 Less cost of goods sold ($58 per unit) 56,840 Gross margin 41,160 Less operating costs: Commissions expense ($5 per unit) $ 4,900 Salaries expense 7,900 Advertising expense 5,800 Shipping expense ($3 per unit) 2,940 21,540 Operating income $ 19,620

                        Contribution Margin Statement

Sales revenue ($100 x 980)                               $98,000

Less Variable costs:

cost of goods sold ($58 x 980)         $56,840

Commissions expense ($5 x 980)    $4,900

Shipping expense ($3 x 980)            $2,940

                                                                             $64,680

Gross margin                                                       $33,320

Less Fixed costs:

Salaries expense                                $7,900

Advertising expense                          $5,800

                                                                             $13,700

Net Profit                                                             $19,620

Which of the following statements is true of factors that create consumer attention. Moving objects will get more attention than the stationary ones

Correct answer is (C)

Explanation:

Motion plays a very important role in catching the attention of the consumers.An organisation has to work very hard to get the attention of consumers.Sometimes it is tough to gain their attention.Various techniques are used to catch the customer's eye.But the researches have shown that moving objects attract more customers than the stationary one.

Objects in motion are more appealing to our eyes .Like advertisements on television have more influence on consumer's attention rather than advertisement in newspapers which is stationary.

Advertisement is the best way to communicate with the target customers.But if that ad is in motion and has sound also it will remain in the mind of consumer for long time.

So it can be said that movement attract attention and influence the purchase decision.A stagnant sign does not have a same effect as a sign in motion.Moving object has the ability to convince.