Sanama Industries Has Three Product Lines: A,B and C

question 4

Multiple Choice

Sanama Industries has three product lines: A,B and C.The following annual information is available: Sanama Industries is thinking about dropping Product C because it is reporting a loss.Assume Sanama Industries drops Product C and the space formerly used to produce Product C is rented out for $15,000 per year.What will happen to operating income?

• A)increase $6,600
• B)increase $9,000
• C)increase $14,400
• D)increase $15,000

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Definitions:

Direct To Consumer

A business model where companies sell products directly to consumers, cutting out any intermediaries such as retailers or wholesalers.

Face-To-Face

Personal encounters or meetings involving direct eye contact and communication in the same space.

Industrial Distributor

A company that buys products directly from manufacturers and sells them to businesses or retail consumers.

Marketing Channel Functions

Activities involved in moving goods from producers to consumers, including distribution, promotion, and price setting.