Cannibalization Would Most Likely Occur If

question 130

Multiple Choice

Cannibalization would most likely occur if

• A) Dell adds high-end speaker systems to its line.
• B) General Mills launches Caramel Crunch Cheerios.
• C) General Motors markets a motorcycle similar to the Can-Am Spyder Roadster three-wheel bike.
• D) Pillsbury adds boxed sugar to its product mix.
• E) Procter & Gamble adds a new line of baby clothing to its Pampers stable of products.

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Definitions:

Investment Turnover

A measure of a company's ability to generate sales from its investments in assets, typically indicating efficiency.

Use Of Assets

This involves the effective and efficient employment of a company's resources to maximize profitability and productivity.

Profit Margin

A financial performance metric that shows the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency of a company in generating profits.

Operating Income

The profit realized from a business's core operations, calculated by subtracting operating expenses from gross profit.