Answer: e. To drive up market share
Explanation:
Differentiation strategies involve adding features to a good to make it stand out from the Competition. Since these features are usually beneficial, the value of the good goes up and the company selling them can charge more. This is the main way things are done in Monopolistic markets.
However, sometimes it is best to charge the same price the Competition is charging even though you have a better product. This way the company is able to capture Market Share because the consumers will believe they are getting a better value for their money. For instance, if a company was selling Toyotas at $2,000 and it's competitor was selling the same Toyota but with 2 extra tires for the same $2,000 who would you use? The Competitor most likely.
This is why a firm might want to keep prices in line with competitors.
If the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of (C) line extension.
<h3>
What is line extension?</h3>
- The process of expanding an established product line is referred to as line extensions.
- When a corporation with a well-known brand releases new items in a product segment.
- The corporation capitalizes on the existing product's value to the market and presents new options to consumers.
- A corporation launches a brand line extension by using the brand name of an existing product to launch a new, somewhat different item in the same product category.
- Line extension would be demonstrated if the manufacturer of Cool Whip introduced a chocolate-flavored Cool Whip while continuing to produce all of its existing Cool Whip products.
Therefore, if the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of (C) line extension.
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The complete question is given below:
If the manufacturer of Cool Whip were to introduce a chocolate-flavored Cool Whip and still continue to produce all of its other Cool Whip products, this would be an example of
a. a brand extension.
b. quality modification.
c. line extension.
d. a new-to-the-world product.
e. functional modification.
Based on business strategies and production, the statement that is true about product life cycles is "Early adopters buy in the introductory phase."
<h3>What is the Life Cycle of a Product</h3>
The life cycle of a product is a term that is used to describe the proportion of time a product goes from being introduced into the market by the producers until it's taken off the shelve.
Usually, the product life cycle is in different stages, and each of the stages is important to the success of the products in the market.
<h3>The Life cycle of a product is the following:</h3>
- introduction,
- growth,
- maturity, and
- decline.
Generally, the in the introduction stage of a product's life the early adopters are the first category of consumers that try new products before most other consumers key into it.
Hence, in this case, it is concluded that the correct answer is option c. "Early adopters buy in the introductory phase."
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To raise money to grow the company
Answer: The amount of gross margin Mazer would report if the company uses absorption costing is $1350.
Explanation:
Given that,
Mazer Manufacturing Company produced = 2,000 units of inventory
Units Sold = 1,800 units
Variable product cost = $4 per unit
Fixed manufacturing overhead cost = $2,500
Sales price of the products = $6 per unit
Fixed manufacturing cost per unit = 
= 
= $1.25 per unit
Unit Product cost under Absorption costing = Variable product cost + Fixed manufacturing cost per unit
= 4 + 1.25
= $5.25
∴ Gross margin under Absorption costing = Sales Revenue - Cost of goods sold
= Units sold × sales price - Units sold × Unit Product cost under Absorption costing
= 1800 × 6 - 1800 × 5.25
= 10800 - 9450
= $1350
