Smith-Binney's Crayola Makes Various Products,all Targeted Toward Elementary School Children

question 47

Essay

Smith-Binney's Crayola makes various products,all targeted toward elementary school children.Drawing,painting,and supply items are sold at convenience stores,toy stores,and grocery stores.Clothing is sold in department stores.Crayola might arrange its product items in the following way:

What is the product mix width for Crayola? What is its product line depth?

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Definitions:

Maintenance Cost

Maintenance cost is the total expense incurred in keeping an asset in good working condition, including costs for repairs, replacements, and preventive measures.

Administrative Expense

Overhead or general expenses related to the administration of a business, not directly tied to any specific department or product.

Expected Net Income

The projected profit of a business after all expenses and taxes have been deducted from total revenue.

Sales Commission

A fee paid to sales personnel, often calculated as a percentage of the sales they generate.