All of the Following Are Examples of Product Differentiation Except

question 152

Multiple Choice

All of the following are examples of product differentiation except one.Which is the exception?

• A)developing a new video game or a computer program called "How to Teach Your New Dog Old Tricks"
• B)manufacturing a car that minimizes outside noise relative to other cars
• C)lowering the price of a good in a special sale
• D)providing movies and special meals on airline flights
• E)making sodium-free, caffeine-free colas

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Definitions:

Budgeted Net Income

The projected net income for a future period, based on expected revenues and expenses.

Variable Expenses

Expenses directly linked to the volume of output, adjusting in accordance with business activity levels.

Fixed Expenses

Recurring costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to a change in its sales volume, signifying the impact of fixed versus variable costs.