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Domino Pizza's franchisees are required to contribute towards the marketing costs which is undertaken nationally by the parent company. The amount that franchisees are required
Domino Pizza's franchisees are required to contribute towards the marketing costs which is undertaken nationally by the parent company. The amount that franchisees are required to pay for marketing is 6% of their store's sales revenues. Which of the following statements about the franchisee's marketing cost and its assignment to each item on their menu is/are true? 1. Marketing cost should be assigned (or allocated) equally to each item on the menu to ensure accurate assignment (or allocation). 2. Marketing cost should be assigned (or allocated) to each item on the menu based on the revenues earned by the item to ensure accurate assignment (or allocation). 3. Marketing cost is more like a fixed cost compared to a variable cost for the franchisee. Statement 1 only 0 0 0 Statement 2 only Statement 3 only Statement 2 and 3 only O Statement 1,2 and 3
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