Coca-Cola still produces Tab, a diet drink, for a small group of very brand loyal customers. If a sales volume analysis shows the product to be unprofitable, why would Coke keep producing Tab?
A) The economic order quantity for Tab is low.
B) Tab has a low break-even point.
C) Coca-Cola does not have any other brands diet soda on the market.
D) The demand for soda is inelastic.
E) None of the above reasons explains why Coke keeps making Tab.

Question

Quizplus · Accepted Answer

The reasons provided (A, B, C, D) do not adequately explain why Coca-Cola would continue to produce Tab if it's unprofitable. The decision to keep producing Tab despite its unprofitability likely involves factors not listed, such as brand loyalty, market presence, or strategic reasons that are not directly related to the immediate profitability of the product.

Coca-Cola Still Produces Tab, a Diet Drink, for a Small