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Assume you are the product manager of a large, internationally known company that manufactures consumer products...

30 MC questions - ** See ATTACHED file(s) for complete details **


31. During which of the following time periods will you probably encounter the greatest numbers of competitors?

(A) the first 6 months
(B) year 2
(C) year 3
(D) year 4


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Below are the answers and explanations...

31. Because the product is new and monthly revenue projections decrease as the time passes, this is a sign that we will encounter greater number of competitors in the later stages of the product life.
Answer: (D) Year 4

32. CM= contribution margin
OI = operating income
SP = sales price per unit = $6
VC = variable cost per unit
Q = quantity
SP- VC = contribution margin per unit
CM= sales revenues - variable costs
CM = Q (SP - VC)
OI = CM- Fixed costs = 0 (breakeven condition)
Q x 2 - $3,000,000 =0
Q= 1,500,000 units
Sales revenue = Q x SP
= 1,500,000 x 6
= $9,000,000
Answer: (B) $9 million

33. The best option is to acquire company D and its patented technology because this company found a way to reduce manufacturing costs significantly. In this way we can make the market more profitable for us while still having the benefits of monopolistic power in the industry.
Answer: (D)

34. Answer: (D) Time series (since sales revenue projections decrease with the time)

35. In my opinion the best planning emphasis should be reducing costs with learning curve and efficiency methods.
Answer: (C)

36. Since the firm doesn't use any advertising methods other then yellow pages; its time to invest money in stronger advertising and promotion methods like TV and radio.
Answer: (A)

37. The best thing to do at the ...

Solution Summary

The solution provides a brief explanation to the given multiple choice questions on marketing, accounting and management.