Through Various Mergers and Acquisitions, Pfizer's Structure Had Become Too

question 53

True/False

Through various mergers and acquisitions, Pfizer's structure had become too tall, which was hindering the creativity of the R&D function.

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Definitions:

Unit Volume

The quantity of items or units produced or sold.

Contribution Margin Ratio

The proportion of sales revenue that remains after variable costs are subtracted, indicating how much contributes to covering fixed costs and generating profit.

Fixed Expenses

Costs that do not fluctuate with the level of production or sales, such as rent, insurance, and property taxes.

Contribution Margin Ratio

A ratio that represents the percentage of sales revenue that exceeds variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.