A Company Sells Three Different Products

question 13

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 above.

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Definitions:

External Recruitment

The process of searching for and hiring candidates from outside the organization to fill open positions, expanding the pool of potential talent.

Workforce

The collective group of individuals engaged in or available for work, either in a particular area or in a specific industry.

Downsizing

The reduction of an organization's workforce to cut costs and improve efficiency, often resulting in job losses.

Surplus Labor

Refers to the portion of labor capacity that exceeds the necessary labor for producing a desired output.