Exam 7: Product Design and Development

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

All of the following can make product development a risky proposition except _____.

All of the following are reasons why product development is a risky proposition except:

Contribution margin per unit is the excess of revenue per unit over fixed cost per unit.

You can even get a patent on something that is useless.

A goal of an entrepreneurial start-up includes profitability and growth.

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

A _____ business offers such products as haircuts or taxi rides.

Identify eight major questions to ask when assessing competition.

During the product development process of _____, a product development team is involved in design work to ensure that the product will be safe.

Scenario-Based 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: Cost (to you) per pair of shoes $80 Sales commission per pair of shoes $10 Managers' Salaries $420,000 Rent $120,000 Advertising $20,000 Insurance $16,000 Miscellaneous fixed costs $24,000 Selling price per pair of shoes $160 -How much are total fixed costs?

Getting feedback to refine the product concept is one of the seven steps in the _____ process.

When Just Born reduced the piece size, added some new ingredients, and put its Mike & Ike's in pouches, this was an extension to an existing product.

A physical model of a product is called a ramp-up.

If you've concluded that you have a potential product for which people will pay money, your next step is to _____.

To research an industry, you begin by looking at smaller sectors of the industry.

A fixed cost varies, in total, as the quantity of goods sold changes but stays constant on a per-unit basis.

His job, according to Doug Hall, head of a Cincinnati?based idea factory, is to help executives get their creative juices flowing.

Which of the following can cost a company developing a new product a great deal of money?

Most companies constantly look for ways to make ________improvements in existing products by adding features that will broaden their consumer appeal.