Following the Bursting of the Housing Bubble in 2005,KB Homes

question 50

Multiple Choice

Following the bursting of the housing bubble in 2005,KB Homes sold ________ new homes and its stock price ________ dramatically.The result was total losses of $2.4 billion between 2007 and 2010.

• A)fewer; rose
• B)fewer; fell
• C)more; rose
• D)more; fell

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Definitions:

Existing Sales

The volume or amount of sales that a company has already achieved within a specific period, prior to any new sales efforts or campaigns.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating the portion of sales available to cover fixed costs and generate profit.

Constrained Resource

A limiting factor that affects a company's ability to meet production goals or maximize profits.

Sales Mix

The combination of products or services that a company sells, typically analyzed to understand how different products contribute to sales and profitability.