Kellogg's different types of cereals are each targeted at a different type of user.This is 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 FDA guidelines.
B) adds to the manufacturer's sales revenues and profits.
C) creates economy of scale.
D) decreases the cost of the physical plant.
E) stabilizes the sales revenues and profits.

Question

Quizplus · Accepted Answer

The addition of multiple cereals targeting different markets is worthwhile because it adds to the manufacturer's sales revenues and profits. If done correctly, it can also serve customers' needs better without reducing quality or increasing price. The other options listed do not necessarily apply to the situation.

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