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Scenario 10.4 Use the Following to Answer the Questions

question 172

Multiple Choice

Scenario 10.4
Use the following to answer the questions.
When Silk Soymilk began packaging its chocolate milk in single-serving sizes, the company chose drink boxes that did not need refrigeration. The boxes were only sold in shrink-wrapped sets of six. Single boxes were not available at grocery stores or convenience markets. Once the Silk chocolate product was selling well, they also began offering the Silk Soymilk vanilla flavor in the same type packaging. The Silk Soymilk brand, logo, and look of the boxes were the same as its larger half-gallon versions. The only difference in packaging style was the brown color for chocolate milk and the color white for vanilla.
-Refer to Scenario 10.4. Silk Soymilk probably increased demand for its single servings by facilitating increased consumption of the product through its practice of packaging.

Definitions:

Monthly Compounded

A method where interest adds to the principal sum at the end of each month, allowing for the interest in the next month to be based on the new total.

Annuity Investment

A financial product typically sold by insurance companies that provides periodic payments to the holder for a defined period of time or for life.

Effective Rate

The interest rate on a loan or financial product restated from the nominal rate as an interest rate with annual compound interest payable in arrears.

Annuity Investment

An economic tool designed to disburse a consistent flow of funds to someone, primarily for retirement preparation purposes.