Use the Following to Answer the Questions Below

question 103

Multiple Choice

Use the following to answer the questions below.
A company must decide on the type of equipment to buy in order to manufacture a new product line.The company can purchase an all-purpose machine,with fixed costs amounting to $20,000 per year,and it will cost $40 / unit to produce the new line on this machine.It can also buy a special-purpose machine,with fixed costs of $50,000 per year,and the per unit cost on this machine is $30.
-Refer to the instruction above.What does the company save for the year by selecting this low-cost option (for annual requirements of 5,000 units) ?

• A)$15,000
• B)$5,000
• C)$10,000
• D)$20,000

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Definitions:

Positioning Strategies

Marketing strategies aimed at establishing a product or brand in a particular segment of the market, influencing consumer perception.

Sociocultural Concerns

Issues related to the social and cultural factors that influence individuals, communities, and societal norms and behaviors.

International Marketing

The practice of promoting and selling products or services across national borders.

Distribution Channels

Networks through which a company delivers its products or services to its customers, including pathways involving wholesalers, retailers, or direct sales.