P. 1
Chap 009

Chap 009

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Published by: bbbold498 on Mar 12, 2012
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11/17/2012

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Kellogg's different types of cereals, each targeted at a different type of user, are an example of
multiple products aimed at multiple markets. Manufacturing these different cereals is clearly
more expensive than producing one but seems worthwhile if it serves customers' needs better,
doesn't reduce quality or increase price, and:

a.conforms to all union regulations.
b.reduces the number of employees required.
c.decreases the cost of the physical plant.
d.stabilizes the sales revenues and profits.
e.adds to the manufacturer's sales revenues and profits.

Answer: e

Page: 190
Rationale: Manufacturing multiple products for multiple market segments is
worthwhile under the conditions described if sales revenue and profits
increase.

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