A Company Has Two Different Products That Are Sold in Different

question 93

Multiple Choice

A company has two different products that are sold in different markets. Financial data are as follows: Assume that fixed costs are all unavoidable and that dropping one product would not impact sales of the other. If Product B is dropped, what would be the impact on total operating income of the company?

• A)increase $2,000
• B)increase $300
• C)decrease $2,000
• D)decrease $300

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Definitions:

CPM

Stands for Cost Per Thousand impressions, a metric used in advertising to denote the price of 1,000 advertisement impressions on one webpage.

Reach

The total number of individuals or entities exposed to a particular marketing message or campaign within a specified period.

Rating

The percentage of households in a market that are tuned to a particular TV show or radio station.

Share

A unit of ownership interest in a corporation or financial asset, allowing the shareholder to claim a part of the company's assets and earnings.