151 Product Line Refers to

question 315

Multiple Choice

151 Product line refers to

• A)a product and all complementary counterparts of that product that are used to create the greatest customer value.
• B)all products and product substitutions within an industry specified by a unique SIC code.
• C)the total number of units produced and sold by a single manufacturer.
• D)a group of products that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, are distributed through the same types of outlets, or fall within a given price range.
• E)a product, all its predecessors, and future models of that product, created from the same basic prototype.

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Definitions:

Break-even Formula

A calculation to determine when a business or product will be able to cover its costs and begin to make a profit.

Fixed Costs

Business expenses that remain constant regardless of the volume of goods or services produced, such as rent, salaries, and insurance.

Unit Variable Costs

The cost associated with producing one additional unit of a product or service.

Price Equation

A formula representing the determinants of the price of a good or service, including production costs, competition, demand, and supply.