Which of the following is the best reason for continuing to carry a product when a sales volume analysis indicates it is a low-volume item?
A)The item is needed to round out the company's product line.
B)The product accounts for 5 percent of the sales volume and 2 percent of the profit.
C)The primary demand for the product is declining.
D)The product's gross margin is also low.
E)The product was what gave the company its start in life.

Question

Quizplus · Accepted Answer

If the low-volume item is needed to round out the company's product line, it may be important to continue carrying it for branding and customer satisfaction purposes. This could also help maintain customer loyalty and prevent them from looking for similar products from competitors.

Which of the Following Is the Best Reason for Continuing