A Fast Food Chain Has Determined That for Every $1

Multiple Choice

A fast food chain has determined that for every $1 spent by a 'light user,' each 'heavy user' spends $5. Which statement best describes this situation?

A) Eighty percent of a firm's first time users will become brand loyal and twenty percent of the firm's first time users will use the product only once.
B) Eighty percent of a firm's sales are obtained from twenty percent of its customers.
C) Eighty percent of a firm's expenditures are tax deductible and twenty percent are not.
D) Eighty percent of a firm's inventory should be readily available, and twenty percent should be reserved for emergency demand.