When making a sales volume analysis by product line:
A)It is useful if industry sales figures are available for each of our product lines.
B)The 80-20 and the iceberg principles usually do not apply.
C)With respect to a given product,management should be satisfied if sales of that product are increasing as a share of company total sales.
D)Management should drop a product if its sales are below expectations.
E)Low-volume products should be dropped,especially if a cost analysis shows them to be a loss.

Question

Quizplus · Accepted Answer

Having industry sales figures for each product line can provide valuable context and benchmarks for analyzing our own sales volume by product line.

Answer: C
 If a product's sales are increasing as a share of company total sales, it suggests that the product is performing well relative to other products in the company's portfolio.

Answer: E
 Low-volume products that are not profitable can be a drain on resources, so dropping them can be a sound business decision. A cost analysis can help determine whether a product is profitable or not.

When Making a Sales Volume Analysis by Product Line