Microsoft Windows Generates Considerable Income for the Parent Company but Is

question 18

Multiple Choice

Microsoft Windows generates considerable income for the parent company but is also expensive to support. However, the expense is acceptable because Windows is the world's dominant operating system. How would Windows be classed under the market share/market growth matrix?

• A) as a star
• B) as a cash cow
• C) as a question mark
• D) as a dog

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Definitions:

Contribution Margin Ratio

A financial metric that measures the proportion of revenue that exceeds variable costs, indicating how much revenue contributes to covering fixed costs and generating profit.

Sales

The total amount of revenue generated by the selling of goods or services related to a company's primary operations.

Routine Pricing

A method where prices are set based on standard costs plus a fixed profit margin, commonly used in consistent market conditions.

Variable Costs

Costs that vary directly with the level of production or sales volume.