A manager utilizes contribution margin matrix analysis to evaluate a menu. What would be a good marketing strategy to use on an item the manger finds is very popular but has a low contribution margin?
A) Promote the item well
B) Reduce the item's price
C) Remove the item from the menu
D) Reduce the item's prominence on the menu
Correct Answer:
Verified
Q2: The primary purpose of Cost/Volume/Profit (CVP) analysis
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Q5: What type of menu item should be
Q6: Which type of menu item should be
Q8: A menu item sells for $8.00, has
Q9: The tendency to favor high-priced menu items
Q10: A menu item sells for $11.95 and
Q11: A loss leader is a menu item
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