The Depth of a Product Mix Is Measured by the Average

question 215

Multiple Choice

The depth of a product mix is measured by the average number of

• A) convenience products as compared with the number of specialty products.
• B) different product lines offered by the company.
• C) different products offered in each product line.
• D) specialty products as compared with the number of convenience products.
• E) product features that the company offers.

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Definitions:

Common Size Income Statement

A financial statement that presents all items as a percentage of a common base figure, making it easier to analyze changes and compare financial performance over time.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating financial health.

Return On Assets

A financial metric that measures the profitability of a company in relation to its total assets.

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales by calculating the percentage of revenue that translates into profits.