Manufacturers Can Do All of the Following to Regain Some

question 52

Multiple Choice

Manufacturers can do all of the following to regain some control over the price their products are sold for at the retail level EXCEPT:

• A) require resellers to maintain prices in line with competitors' prices
• B) developing brand loyalty in consumers by delivering quality and value
• C) avoiding doing business with price-cutting discounters
• D) franchising
• E) using an exclusive distribution system

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Definitions:

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the net profit from the investment by its cost.

Traceable Fixed Expense

Costs that can be directly linked to a specific department, product, or segment of a business and do not change with the level of output or sales.

Net Operating Income

A company's revenue minus its operating expenses, not including taxes and interest charges, representing the profit from core business operations.

Price

Refers to the monetary value assigned to a product or service, indicating what a buyer must pay to obtain it.