Question 1

Which attribute of the product mix corresponds to the number of product lines?

Options :

A : Depth

B : Consistency

C : Width

D : Length

Answer: C

Question 2

Which of the following factors is not typical of an industry that faces intense competitive rivalry?

Options :

A : Price-cutting

B : Large adverting budgets

C : Frequent introduction of new products

D : Inelastic demand

Answer: D

Question 3

A firm has daily cash receipts of $100,000 and collection time of 2 days. A bank has offered to reduce

the collection time on the firm’s deposits by 2 days for a monthly fee of $500. If money market rates

are expected to average 6% during the year, the net annual benefit (loss) from having this service is

Options :

A : $3,000

B : $12,000

C : $0

D : $6,000

Answer: D

Question 4

Marketing is involved in all phases of the business-process approach to approach to value creation

and delivery. In the tactical marketing phase, the firm

Options :

A : Defines market segments

B : Selects target markets

C : Dvelops the offering

D : Uses an integrated marketing process to communicate value

Answer: D

Question 5

The Summers Company manufactures a vanity of industrial valves. Current’, the company is

operating at about 70?pacity and is earning a satisfactory return on investment. Management has

been approached by Glasgow Industries Ltd. of Scotland with an offer to buy 120.000 units of a

pressure valve. Glascow manufactures a valve that is almost identical to Summers’ pressure valve;

however, a fire in Glascow Industries’ valve plant has shut down its manufacturing operations.

Glascow needs the 120,000 valves over the next 4 months to meet commitments to its regular

customers; the company is prepared to pay $19 each for the valves. FOB shipping point. Summers’

product cost, based on current attainable standards. for the pressure valve is

Manufacturing overhead is applied to production at the rate of $18 per standard direct labor hour

This overhead rate is made up of the following components How many additional direct Labor hours

would be required each month to fill the Glascow order?

Options :

A : 10,000

B : 15,000

C : 30,000

D : 120,000

Answer: B

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