The contribution-margin approach to marketing cost analysis
A. is especially useful for estimating the long-run profit of a proposed strategy.
B. is especially useful for determining if there should be more controls on fixed costs.
C. allocates variable costs that are hard to measure to overhead.
D. considers only those costs that are directly related to particular alternatives.
E. All these answers are correct.
Answer: D
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Fill in the blank(s) with the appropriate word(s).
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A. Using strategies to create meaningful scale economies. B. Creating a national brand where none previously existed. C. Lowering costs through the creation of scale economies by value innovations. D. Offering new ways to address customer’s demands such as wider product selection, longer operating hours, and lower prices. E. All of these are ways that a fragmented industry can be consolidated.
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