Kellogg's has several cereals targeted at different types of users.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

Manufacturing multiple products targeted at different markets allows Kellogg's to increase their sales revenues and profits by serving a wider range of customers. As long as the quality is not sacrificed and the price is not increased, the additional costs of producing multiple products are likely offset by the increase in sales.

Kellogg's Has Several Cereals Targeted at Different Types of Users