Exam 7: Product Design and Development

The approach used to determine when your total sales revenues exactly equal your expenses is called _____.

Your product idea is to offer cruises for college students.Your market niche is:

To break even means that total sales revenue must exactly equal all of your expenses.

Your goal is to sell jogging shoes to those 65 and other who live in Florida. Here is some information you have collected: (1) There are 3 million joggers 65 and older in the U.S. (2) 600,000 of them live in Florida. (3) Florida attracts 20% of all people who move when they retire. (4) You estimate that during your first year you will capture 2 percent of the Florida joggers who are age 65 or older. (5) You estimate that your sales will increase by 25% in year 2. -Which of the following piece(s)of information would be used to forecast your demand for year 2?

An idea turns into business success when it has commercial potential.

You can protect your rights to your idea with a patent.

To get some idea of the total market for products like the one you want to launch,you could begin by _____.

Once you receive your patent from the U.S.Patent and Trademark Office,it is good around the world.

Launching a "new-to-the-market" product is very risky but can be very profitable.

All of the following are types of utility that customers value except _____.

Breakeven analysis is an approach used to determine the level of sales at which a company will have no profit or loss.

By making Christmas decorations available the day after Thanksgiving,Holly's Holiday Shop is offering customers what kind of utility?

Your goal is to sell jogging shoes to those 65 and other who live in Florida. Here is some information you have collected: (1) There are 3 million joggers 65 and older in the U.S. (2) 600,000 of them live in Florida. (3) Florida attracts 20% of all people who move when they retire. (4) You estimate that during your first year you will capture 2 percent of the Florida joggers who are age 65 or older. (5) You estimate that your sales will increase by 25% in year 2. -Which piece(s)of information is/are irrelevant to the problem?

You might want to subdivide a segment further to isolate a market.

Products are either physical goods or services and can't be both.

Let’s say you want to open a shoe store that will specialize in high-end shoes. But before you do, you want to determine how many pairs of shoes you have to sell in the first year to break even (have no profit or loss). You also want to know what your profit will be in year two. You have been busy estimating some revenues and costs. Here is what you have so far: -What is the contribution margin per unit?

If no product existed prior to its invention,then the product is a(n)_____.

Let’s say you want to open a shoe store that will specialize in high-end shoes. But before you do, you want to determine how many pairs of shoes you have to sell in the first year to break even (have no profit or loss). You also want to know what your profit will be in year two. You have been busy estimating some revenues and costs. Here is what you have so far: -How much is the variable cost per unit?

The majority of product ideas come from _____.

Variable costs don't change when the amount of goods sold changes.