Kellogg's Different Types of Cereals, Each Targeted at a Different

question 172

Multiple Choice

Kellogg's different types of cereals, each targeted at a different type of user, are an example of multiple products aimed at multiple markets.Manufacturing these different cereals is clearly more expensive than producing one, but seems worthwhile if it serves customers' needs better, doesn't reduce quality or increase price, and

• A)conforms to all FDA guidelines.
• B)creates economy of scale.
• C)decreases the cost of the physical plant.
• D)stabilizes the sales revenues and profits.
• E)adds to the manufacturer's sales revenues and profits.

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