A Product Benefit Answers Which of the Following Questions

question 92

Multiple Choice

A product benefit answers which of the following questions?

• A)Who's going to buy it?
• B)Why am I buying it?
• C)What's in it for me?
• D)How much will a customer pay for it?
• E)How do we close the deal?

Define and identify variable and fixed costs and their relevance to product decisions.

Calculate the total contribution margin and apply the concept of constrained resources to maximize profitability.

Recognize and differentiate between sunk costs and opportunity costs in decision contexts.

Evaluate the financial impact of accepting special orders on net operating income.

---

Definitions:

Total Spending

The aggregate amount of money spent by consumers, businesses, and the government in an economy over a specific period.

Inelastic

Characterizes a condition where a change in price leads to a relatively small change in the quantity demanded or supplied.

Price Elasticity of Demand

The responsiveness of the quantity demanded of a good to a change in its price, with all other factors being held constant.

Elastic

Describes a situation where the demand for a product significantly changes in response to changes in its price.