When Home Depot Develops New Carpet Fibers That Are Highly

question 33

Multiple Choice

When Home Depot develops new carpet fibers that are highly stain-resistant and durable, it must educate consumers about the product's benefits. This calls for activity in which of the following marketing mix variables?

• A)Price
• B)Promotion
• C)Distribution
• D)Product
• E)Packaging

Describe the components and purpose of a Cost-Volume-Profit (CVP) chart.

Define the break-even point and its importance in business decision-making.

Conduct a cost-volume-profit analysis for multi-product companies with known sales mixes.

Calculate the margin of safety and its implications for business stability.

---

Definitions:

Perfect Competition

A market structure characterized by an infinite number of buyers and sellers, homogenous products, and no barriers to entry or exit, leading to price takers rather than price makers.

Efficiency

The ability to achieve a desired result or work output with minimum wasted effort or expense.

Equity

A measure of ownership in a company or asset, typically represented by shares that entitle holders to a proportion of the company's profits.

Voluntary Exchange

A transaction where two parties mutually agree to trade goods, services, or resources, typically to the perceived benefit of both.