When Companies Search for New Ways to Satisfy Customers and Distinguish

question 138

Multiple Choice

When companies search for new ways to satisfy customers and distinguish their offering from others, they look at the ________ product, which encompasses all the possible augmentations and transformations of the product.

• A) consumption
• B) expected
• C) potential
• D) augmented
• E) basic

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Definitions:

Contribution Margin Ratio

The percentage of each sales dollar that remains after deducting variable costs, calculated as contribution margin divided by sales.

Net Operating Income

The profit of a business after operating expenses are subtracted from gross income.

Break-even Point

The production level or sales volume at which total revenues equal total expenses, resulting in no net profit or loss.

Break-even Point

The level of production or sales at which the revenues of a business equal its costs, resulting in neither profit nor loss.