Use the Following to Answer the Questions Below

question 8

Multiple Choice

Use the following to answer the questions below.
A company is considering two suppliers for the purchase of a part needed for manufacturing. Particulars are as follows:

-Refer to the instruction above. What is the annual break-even quantity for choosing between the two suppliers?

• A) 1,000 units
• B) 2,000 units
• C) 6,000 units
• D) 12,000 units

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Definitions:

Product Category

A broad classification that groups products based on common characteristics or needs.

Product Line Extension

The addition of new products to an existing product line within the same brand, usually to target a different customer segment or fill a gap in the product offering.

New-Product Strategies

The plans and approaches a business undertakes to bring new products to the market effectively.

Product Diversification

A strategy employed by companies to increase profitability and achieve growth by adding new products or entering into different markets that differ from the existing lineup.