Which of the following refers to a group of products that are functional substitutes of each other?
A) an industry
B) a product variant
C) a product type
D) a product class
C
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The Dairy Division of Famous Foods, Inc. produces and sells milk to outside customers. The operation has the capacity to produce 200,000 gallons of milk a year. Last year's operating results were as follows:
Sales (160,000) gallons $500,000 Variable costs 312,000 Contribution margin 188,000 Fixed costs 100,000 Net Income $ 88,000 Assume the Yogurt Division wants to purchase 30,000 gallons of milk from the Dairy Division. The minimum price that will increase the Dairy Division's profit is a) $0.55 per gallon. b) $1.95 per gallon. c) $2.50 per gallon. d) $1.18 per gallon.
Strategic planning for a large firm such as Disney with several SBUs probably occurs ________
A) only in its corporate headquarters B) only at the individual business unit level C) at both the overall corporate level and at the individual SBU level D) as needed based upon the success of the division E) at the location best suited for this function based upon findings of the SWOT analysis