A Company Has Two Different Products That Are Sold in Different

question 155

Multiple Choice

A company has two different products that are sold in different markets.Financial data are as follows:

Assume that fixed costs of $2000 could be eliminated if Product B was dropped.Assume furthermore 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)increases by $2000
• B)increases by $2500
• C)increases by $500
• D)increases by $2100

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Definitions:

Generating Interest

The process of creating engagement or enthusiasm among a target audience about a product, service, or concept.

Marketing Communication

The use of various tools and channels to deliver messages about a product or service to target customers, aiming to achieve business goals.

Right Audience

The specific group of people a company targets with its marketing and advertising efforts, based on characteristics relevant to the product or service.

Right Media

A digital advertising platform that enables advertisers, publishers, and digital media companies to buy and sell ad space in real time.