in a recent annual report, a major soft drink manufacturer and distributor announced that the gross profit margin was down 1%. (1% may not sound like much, but one percent of $37 billion is a $370 million decrease in gross profit.) The company justfied the loss because if an increase in direct materials and increase in selling expenses. The increase in selling expenses were due to higher marketing costs used to grow the business.

Answer the following questions:

1. in your opinion, are the marketing expenses in total a fixed cost, a variable cost, or a mixed cost?

2. justify your answer to number one. Why did you characterize them as fixed, variable, or mixed?

3. use some examples to justify your answer. See below for some cost options.

h2 This is a graded discussion 10 points possible Chapter 22 Critical thinking Question In a recent annual report, a major soft drink manufacturer and distributor announced that their gross profit margin was down 1% (One percent may not sound like much, but 1% of $37 billion is a $370 million decrease in gross pront.). The company Justified the loss because of an increase in direct materials and and increase in selling expenses. The increases in selling expenses were due to higher marketing costs used to grow the business. Answer the following questions: 1. In your opinion, are the marketing expenses in total a fixed cost, a variable cost, or a mixed cost? (2 points) 2. Justify your answer to #1. Why did you characterize them as fixed, variable, or mixed? (4 points) 3. Use some examples to justify your answer. See below for some cost options. (4 points) Hint: Marketing expenses typically include distribution costs such as shipping expenses, advertising costs including web maintenance and social media, and selling costs such as salesperson travel costs and commissions