Which of the Following Statements Is True of an Organization's

question 48

Multiple Choice

Which of the following statements is true of an organization's product mix?

• A) Firms widen their product mix to capitalize on established reputations.
• B) A wide product mix decreases sales and profit-making potential.
• C) A wide product mix means that the product line is deep.
• D) All product items in a product mix follow a standard marketing strategy.

---

Definitions:

Gross Profit

Net sales less cost of goods sold.

Future Revenue

Income that a company expects to receive from its normal business activities in future periods.

Gross Profit

The difference between sales revenue and the cost of goods sold (COGS), indicating the basic profitability of a company's core business operations.

Operating Expenses

Operating expenses are the costs associated with the day-to-day operations of a business, excluding direct production costs, such as rent, utilities, and payroll.