Promotional expenditures on advertising, sales promotion, and personal selling:
A. are not relevant when determining a pricing structure.
B. are incomes that must be covered in a firm's pricing structure.
C. contribute to a product's cost and price and thus make it harder to sell.
D. are expenses that must be covered but can also help reduce costs by creating demand for a product.
E. are examples of fixed costs on an organization's income statement.
Answer: D