What Aspect of the Product Is Being Described When a Used-Car

question 93

Multiple Choice

What aspect of the product is being described when a used-car salesperson explains that each car comes with a one-year extended warranty and a two-year maintenance plan?

• A) actual product
• B) associated services
• C) product style
• D) product position
• E) product concept
• Associated services are the nonphysical aspects of the product such as product warranties.

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Definitions:

Unit Fixed

This specifies a cost or charge that remains constant per unit regardless of changes in the level of activity or volume of production.

Costs

Costs refer to the expenditures incurred by a business in the process of generating revenues.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit.

Fixed Costs

Expenses that remain constant regardless of the amount of production or sales, including rent, wages, and insurance premiums.