Horizontal Integration Is an Example of a

question 49

Multiple Choice

Horizontal integration is an example of a

• A) Generic strategy
• B) Grand strategy
• C) Functional level strategy
• D) SBU strategy

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Definitions:

Contribution Margin

The sales price minus the variable costs of a product, indicating how much selling one more unit adds to profit.

Variable Costs

Costs that vary directly with the level of production or volume of output, such as raw materials and direct labor.

Fixed Costs

Costs that remain constant regardless of the volume of goods or services produced by a business.

Net Income

The total profit of a company after operating expenses, taxes, and all other incomes and expenses have been deducted from total revenue.