General Product Categories, Specific Product Lines, Specific Products Within Lines

question 70

Multiple Choice

General product categories, specific product lines, specific products within lines, and the depth and width of its assortment are factors considered by retailers while developing their:

• A) product liability strategy.
• B) interactive marketing policy.
• C) customer service program.
• D) merchandising strategy.

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Definitions:

Break-even Analysis

A financial calculation to determine the sales volume at which a business neither makes a profit nor a loss.

Cost-volume-profit Analysis

An accounting method used to determine how changes in costs and volume affect a company's operating income and net income.

Sales Mix

The proportion of different products or services that a business sells, significant because it can affect the company's overall profitability depending on the contribution margin of each item.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit. This metric indicates how much each unit sold contributes to fixed costs and profit.