Double Jack Parts runs weekly advertisements for its "Double Jack Specials." Double Jack Specials are products that are marked well below cost. These products can best be classified as
A) fixed profits.
B) market penetrators.
C) price skimmers.
D) variable costs.
E) loss leaders.

Question

Quizplus · Accepted Answer

Products marked well below cost to attract customers to the store, where they are likely to buy other items at regular prices, are known as loss leaders. This strategy is used to increase overall sales volume and attract customers.

Double Jack Parts Runs Weekly Advertisements for Its "Double Jack