The Preferred Strategy for Question Marks Is

question 88

Multiple Choice

The preferred strategy for Question Marks is:

• A) stability or modest growth.
• B) retrenchment.
• C) decrease of current operations.
• D) growth and retrenchment.
• E) growth and heavy resource investments.

---

Definitions:

Sales Mix

The combination of products or services that a company sells, reflecting the variation in profit margins for each.

Annual Fixed Expenses

Costs that do not vary with the level of production or sales over a year, such as rent, insurance, and salaried personnel wages.

Break-Even

The point at which total costs equal total revenue, resulting in neither profit nor loss.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production supplies.