Kraft Produces Lunchables,a Prepackaged Meal Usually Consisting of Several Crackers,small

question 106

Multiple Choice

Kraft produces Lunchables,a prepackaged meal usually consisting of several crackers,small slices of meat,and small slices of cheese.Other items in the product line contain small bottles of Chiquita Strawberry Banana Fruit smoothie,Capri-Sun juice,or Kool-Aid.The box is bright yellow and the quantity of food contained within it is small.The target market for Kraft Lunchables is most likely

• A)moms with school-age children who pack a simple healthy lunch for them.
• B)businesspeople looking for a fulfilling breakfast at the office.
• C)business travelers on the run.
• D)teenagers who are hungry for an after-school snack.
• E)baby boomers who are trying to lose weight.

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Definitions:

Net Present Value

A calculation that compares the present value of cash inflows to the present value of cash outflows over a period of time, used in capital budgeting to assess profitability of investments.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment or to compare the efficiency of several different investments.

Straight-Line Depreciation

A method of allocating an asset's cost evenly throughout its useful life.

Salvage Value

The estimated residual value of an asset after its useful life is over and it has been fully depreciated.