What Distribution Strategy Is Most Likely Best for a Niche

question 22

Multiple Choice

What distribution strategy is most likely best for a niche brand?

• A) intensive
• B) saturated
• C) selective
• D) pull
• E) dual

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating how much revenue is contributing to covering fixed costs and generating profit.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues and expenses.

Expenses

Outflows or depletions of assets or incurrences of liabilities during a period as a result of delivering or producing goods, rendering services, or carrying out other activities linked to an entity's main operations.

Variable Costing

A costing method where variable manufacturing costs are treated as product costs, and fixed manufacturing overhead is treated as a period cost.