Kellogg's different types of cereals, each targeted at a different type of user, are an example of multiple products aimed at multiple markets. Manufacturing these different cereals is clearly more expensive than producing one, but seems worthwhile if it serves customers' needs better, doesn't reduce quality or increase price, and:
A)conforms to all union regulations.
B)reduces the number of employees required.
C)adds to the manufacturer's sales revenues and profits.
D)decreases the cost of the physical plant.

Question

Quizplus · Accepted Answer

The manufacture of multiple cereals serves different customers and meets their specific needs, which can lead to increased sales revenues and profits for Kellogg's. This justifies the cost of producing multiple products. Union regulations, number of employees required, and cost of the physical plant are not relevant factors in determining the success of producing multiple cereals.

Kellogg's Different Types of Cereals, Each Targeted at a Different