"Our Product Is a Powdered Mixture That Is Added to Milk

question 92

Multiple Choice

"Our product is a powdered mixture that is added to milk to make an instant breakfast that gives the person all the needed nutrition along with good taste and high convenience.The product would be offered in three flavors and would come in individual packets,six to a box,at $2.49 a box." This is an example of ________.

• A) a brand concept
• B) a product concept
• C) concept testing
• D) product testing
• E) idea generating

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Definitions:

Operating Income

The income a business receives after subtracting operating costs from its gross profit.

Fixed Costs

Costs that do not change with the level of production or sales activities, such as rent, salaries, and insurance premiums.

Variable Costs

Costs that change in proportion to the level of production or business activity.

Unit Contribution Margin

The amount each unit sold contributes to fixed costs and profit after variable costs are subtracted.