Dani and Jacki Are Brainstorming Over Possible Segments They May

question 17

Multiple Choice

Dani and Jacki are brainstorming over possible segments they may want to target with their new smoothie shop in Collegetown, USA.They have a very limited marketing budget, and want to make sure that their money is well spent.One of the questions Dani and Jacki should consider in choosing segments to target is:

• A) Will the segment be profitable enough?
• B) How many other smoothie shops in Collegetown, USA are targeting this segment?
• C) How many consumers drink smoothies?
• D) What do competitors charge for their products?

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Definitions:

Factory Overhead

The total of all indirect costs associated with manufacturing, including utilities, rent for the manufacturing facilities, and maintenance.

Direct Labor

The cost of wages for employees who are directly involved in the production of goods or the provision of services.

Finished Goods Inventory

The stock of completed products ready for sale at the end of an accounting period.

Raw Materials

Raw materials are the basic materials from which products are manufactured or made, often used in the initial stages of the production process.