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Davis Inc. produces three product lines in its manufacturing facility in St. John's, NL: Product Line (1), Product Line (2), Product Line (3). Davis is considering dropping Product Line (2) because it has been unprofitable for the past two years. Which of the following items is (are) irrelevant to Davis' decision to drop/keep Product Line (2)? O a) Total cost of rent on the manufacturing facility. O b) Customer demand for Product Line (2). c) Savings in direct materials cost associated with Product Line (2). O d) All of the above items are considered relevant in the decision.

Davis Inc. produces three product lines in its manufacturing facility in St. John's, NL: Product Line (1), Product Line (2), Product Line (3). Davis is considering dropping Product Line (2) because it has been unprofitable for the past two years. Which of the following items is (are) irrelevant to Davis' decision to drop/keep Product Line (2)? O a) Total cost of rent on the manufacturing facility. O b) Customer demand for Product Line (2). c) Savings in direct materials cost associated with Product Line (2). O d) All of the above items are considered relevant in the decision.

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Davis Inc. produces three product lines in its manufacturing facility in St. John's, NL: Product Line (1), Product Line (2), Product Line (3). Davis is considering dropping Product Line (2) because it has been unprofitable for the past two years. Which of the following items is (are) irrelevant to Davis' decision to drop/keep Product Line (2)? O a) Total cost of rent on the manufacturing facility. O b) Customer demand for Product Line (2). Oc) Savings in direct materials cost associated with Product Line (2). O d) All of the above items are considered relevant in the decision.
Transcribed Image Text:Davis Inc. produces three product lines in its manufacturing facility in St. John's, NL: Product Line (1), Product Line (2), Product Line (3). Davis is considering dropping Product Line (2) because it has been unprofitable for the past two years. Which of the following items is (are) irrelevant to Davis' decision to drop/keep Product Line (2)? O a) Total cost of rent on the manufacturing facility. O b) Customer demand for Product Line (2). Oc) Savings in direct materials cost associated with Product Line (2). O d) All of the above items are considered relevant in the decision.
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