If Nabisco Wants to Quickly Gain a Large Market Share

question 158

Multiple Choice

If Nabisco wants to quickly gain a large market share with its new line of reduced-fat snack crackers, it should use

• A) penetration pricing.
• B) random discounting.
• C) captive pricing.
• D) price skimming.
• E) everyday low prices.

---

Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Operating Profits

Earnings before interest and tax (EBIT), which is the profit from a business's core operations excluding financing costs and taxes.

Profit Margin

A financial metric used to evaluate a company's profitability, calculated as net income divided by revenue.

COGS/Sales

COGS/Sales is a financial ratio that measures the cost of goods sold against the total sales revenue, often used to assess the efficiency of production.