Lilly Created a Virtual Prototype of Her New Line of Fashion

question 141

Multiple Choice

Lilly created a virtual prototype of her new line of fashion boots on a website to show to consumers. Lilly realizes there are multiple lines of fashion boots on the market and hers will need to be unique. For Lilly, what important question should she be asking at this point?

• A)What retailers should be used to sell the fashion boots?
• B)Will this fashion boot line satisfy an unmet need?
• C)What wholesale price should be charged?
• D)What promotional plan will work best?
• E)In which season should we introduce the product?

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Definitions:

Variable Factory Overhead

Costs of production that fluctuate with the level of output, such as utility expenses and materials used in the manufacturing process, excluding direct labor and materials costs.

Fixed Factory Overhead

Costs associated with manufacturing that do not change with the level of production, such as salaries of supervisors and rent of the facility.

Sales Forecast

A sales forecast is the projection of the amount of revenue a company will generate through sales activities over a specific period.

Cash Receipts

Represents the money received by a business during a specific period, including revenues from sales, services, and loans.