Bradley's Department Store Can Sell Either Products a or B

question 168

Multiple Choice

Bradley's Department Store can sell either products A or B. The following information was gathered: $$\begin{array} { l l l } & \underline { \mathrm { A } } & \underline { \mathrm { B } } \\\text { Retail price per unit } & \$ 54.00 & \$ 33.00 \\\text { Cost of merchandise } & 43.00 & 27.00\end{array}$$ If Bradley's Department Store can sell either 8,000 units of A or 18,000 units of B at full capacity, it should sell:

• A) Product A because the sales price per unit is higher
• B) Product B because the total units sold is higher
• C) Product B because the total contribution margin is higher
• D) Product A because the contribution margin per unit is higher

Explain self-discrepancy theory and its impact on individual behavior and self-perception.

Comprehend the role of self-schemas in emotional and psychological well-being.

Understand the overjustification effect and its impact on motivation and behavior.

Understand the impact of the overjustification effect on job satisfaction and performance.

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Definitions:

Economy of Scale

Economy of Scale refers to the cost advantage that arises with increased output of a product, as fixed costs are spread out over more units of production.

Cash Flow

The complete sum of funds flowing in and out of a company, notably influencing its ability to cover immediate expenses.

Merger

A business strategy where two or more companies agree to join together to form a new entity, often to expand market share or reduce competition.

Marketing Gains

Increases in market share or product value resulting from marketing strategies and campaigns.