Different Brands Within a Company's Product Line Generally Have Different

question 135

Multiple Choice

Different brands within a company's product line generally have different profit margins; higher price lines have higher profit margins. For example, Nike Variety tennis shoes have variable costs of $6 and sell for $24; whereas, Nike Wimbledon tennis shoes have variable costs of $10 and sell for $48. It must be true that:

• A)Nike is using a cost-plus percentage-of-cost pricing strategy.
• B)demand is unrelated to product quality.
• C)Nike is using a price lining strategy.
• D)demand is unrelated to price.

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Definitions:

Interior Layout

The arrangement of fixtures, equipment, and spaces within a building or space to optimize workflow and efficiency.

Slotting Principles

Guidelines used in warehouse management for determining the most efficient placement of goods to optimize retrieval and storage.

Inventory Positioning

The strategic placement of inventory within the supply chain to meet customer demand while minimizing costs and maximizing efficiency.

Centralized Inventory

A management approach where all stock is kept in a single location, facilitating easier inventory control and management.