A Company Sells Three Different Products

question 48

Multiple Choice

A company sells three different products.The first costs $8 and sells for $16,the second costs $18 and sells for $45,while the third costs $36 and sells for $120.

• A)The gross profit percentages on the individual products are 50%,60%,and 70%,respectively.
• B)The third product is the highest margin good.
• C)If the company can persuade some customers to switch to the third product,overall gross profit percentage will increase.
• D)All of the answers are acceptable.

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Definitions:

Symbols

Objects, signs, or representations that stand for or suggest something else by association, resemblance, or convention.

Decoders

Individuals or devices that interpret and convert communications or data into a comprehensible form.

Channels

Mediums or pathways through which communication or information is transmitted.

Communication Skills

The abilities used to convey information, thoughts, and feelings effectively through verbal and non-verbal means.