If a Company Is Eliminating Certain Models of a Product

question 72

Multiple Choice

If a company is eliminating certain models of a product and cutting back on expenditures,the product is most likely in the _____ stage of the product life cycle.

• A)growth
• B)intermediate
• C)introductory
• D)decline
• E)maturity

Calculate the number of units needed to be sold to achieve a target profit.

Understand the relationship between selling price, variable costs, fixed costs, and their impact on profit.

Calculate the margin of safety in both dollars and as a percentage of sales.

Understand and apply the concept of contribution margin (CM) ratio in decision making.

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Definitions:

Middle Managers

Employees who manage other managers or teams and are responsible for implementing the policies and plans decided by upper management.

Strategic Leadership

Leadership that inspires people to continuously change, refine, and improve strategies and their implementation.

Great Communicator

An individual who possesses outstanding verbal, non-verbal, and written communication skills, enabling them to convey information clearly and effectively.

Resource Allocation

The distribution of resources among competing groups or projects to maximize the effectiveness of their use.