Cutting low-gross-margin products from the line takes place in which stage of the product life cycle?
A) Growth
B) Introduction
C) Development
D) Decline
E) Maturity

Question

Quizplus · Accepted Answer

Cutting low-gross-margin products from the line typically happens during the decline stage of the product life cycle, when sales volume and profits are decreasing. This is done in order to focus resources on the most profitable products and reduce costs. In the growth and maturity stages, companies are typically trying to expand sales and may be less likely to cut products from the line. The introduction and development stages are too early for such actions to be taken.

Cutting Low-Gross-Margin Products from the Line Takes Place in Which