The Main Point in Segmenting Products into Different Classes Is

question 39

Multiple Choice

The main point in segmenting products into different classes is that companies should recognize that these items ________ in the potential for being priced higher or advertised more as ways to increase sales,margins,or both.

• A) differ
• B) are more elastic
• C) are less elastic
• D) respond to advertising differently
• E) none of the above

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Definitions:

Sales

The total amount of revenue generated from goods or services sold by a company.

Variable Cost Per Unit

The cost associated with producing one additional unit of product, which varies with the level of production.

Unit Selling Price

The amount of money charged for a single unit of a product or service.

Annual Fixed Costs

The total fixed costs incurred by a business within a year, inclusive of expenses that do not fluctuate with production or sales volume.