One popular cost-oriented pricing tactic is culling low-profit margin products from the product line.Which of the following statements does NOT describe a reason that a marketing manager would want to avoid this tactic?
A)The tactic focuses special attention on the costs of producing each line and their contribution to overhead.
B)The loss of one item in the line may reduce the economies of scale.
C)The image of the rest of the product line may suffer if there is a "hole" in the line.
D)Other items in the line will now have to cover more fixed costs.

Question

Quizplus · Accepted Answer

This pricing tactic does force a company to carefully consider the costs of each line and its overall contribution to overhead and fixed costs.

One Popular Cost-Oriented Pricing Tactic Is Culling Low-Profit Margin Products