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Ampro-Mag is a small company that makes materials for safely controlling hazardous spills of all kinds.It sells these items as a neutralizing kit priced at $100.The costs of the materials that go into each kit are $45.It costs $5 in labor to assemble a kit.The company has monthly expenses of $1,000 for rent and insurance,$200 for heat and electricity,$500 for advertising in trade journals,and $3,500 for the monthly salary of its owner.What is Ampro-Mag's monthly break-even point in terms of number of neutralizing kits sold?


A) 40 kits
B) 52 kits
C) 104 kits
D) 116 kits
E) 520 kits

F) A) and C)
G) C) and E)

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Which of the following is a profit-oriented approach to pricing?


A) skimming pricing
B) target pricing
C) loss-leader pricing
D) target profit pricing
E) standard markup pricing

F) A) and B)
G) C) and D)

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Three different objectives relate to a firm's profit,which have different implications for pricing strategy.The three profit-oriented objectives include __________,maximizing current profit,and achieving a target return.


A) accumulating profits
B) managing for long-run profits
C) reinvesting profits
D) redistributing profits
E) maximizing gross margin

F) D) and E)
G) None of the above

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Cost-plus pricing refers to


A) summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at the price.
B) setting the price of a line of products at a number of different price points.
C) adding a fixed percentage to the cost of all items in a specific product class.
D) setting prices to achieve a profit that is a specified percentage of the sales volume.
E) increasing the price slightly to protect against undue profit losses from unforeseen environmental factors.

F) C) and D)
G) B) and E)

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A one-price policy refers to


A) setting different prices for products and services depending on individual buyers and purchase situations.
B) setting the price of an entire line of products at a single specific pricing point.
C) setting prices for all items in a product line simultaneously,to cover the total cost and produce a profit for the complete line,not necessarily for each item.
D) adding a fixed percentage to the cost of all items in a specific product class.
E) setting one price for all buyers of a product or service.

F) B) and E)
G) A) and B)

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The practice of exchanging products and services for other products and services rather than for money is referred to as __________.


A) barter
B) reciprocal pricing
C) virtual pricing
D) balance of payments
E) value-pricing

F) A) and D)
G) C) and D)

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The average price Washburn Guitars charges for a guitar is $349.99.This pricing level is most reflective of a(n) __________ approach.


A) skimming price
B) penetration price
C) prestige price
D) odd-even pricing
E) target price

F) A) and C)
G) None of the above

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Three different objectives relate to a firm's profit,which is often measured in terms of return on investment.One objective,known as _________,is when a company gives up immediate profit in exchange for achieving a higher market share in the hopes of penetrating competitive markets.


A) maximizing current profit
B) target return
C) break-even strategy
D) minimizing risk
E) managing for long-run profits

F) B) and C)
G) A) and E)

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Mike Morgan,a sales representative for a major food service distributor of General Mill Warm Delights,wanted to encourage repeat purchases by his grocery customers.In order to accomplish this objective,Morgan offered the following discounts to his customers: a 10 percent discount for buying 1-49 cases of Warm Delights within a calendar month; the discount increases to 12 percent if 50-99 cases of Warm Delights are purchased within the same calendar month; and the discount increases to 15 percent if 100 or more cases of Warm Delights are purchased within the same calendar month.What type of discount was Morgan offering his grocery customers?


A) a seasonal discount
B) a quantity discount
C) a cash discount
D) a trade discount
E) a case allowance discount

F) C) and D)
G) D) and E)

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Target return-on-sales pricing refers to


A) adjusting the price of a product so it is "in line" with that of its largest competitor.
B) setting the price of a line of products at a number of different price points.
C) adding a fixed percentage to the cost of all items in a specific product class.
D) setting prices to achieve a profit that is a specified percentage of the sales revenue.
E) setting a price based on a specific annual dollar target profit volume.

F) A) and E)
G) B) and D)

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How do consumers use price in their assessments of value?

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From a consumer's standpoint,price is of...

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In a snack vending machine,consumers can choose one of up to of 20 choices.These snacks are


A) an ideal example of unitary demand.
B) likely to have a price elasticity equal to 1.
C) more likely to be price elastic.
D) likely to have a price elasticity less than 1.
E) more likely to be price inelastic.

F) B) and D)
G) A) and B)

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Which of the following is an example of a price?


A) college tuition
B) operating costs
C) liquidity
D) value
E) stockholders' equity

F) All of the above
G) B) and D)

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Airlines,hotels,and car rental firms all engage in __________ by varying prices based on time,day,week,or season to match supply and demand.


A) skimming pricing
B) yield management pricing
C) bundle pricing
D) target pricing
E) prestige pricing

F) A) and D)
G) A) and B)

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Setting a price to achieve a profit that is a specified percentage of the sales volume is referred to as __________.


A) target return-on-investment pricing
B) target return-on-sales pricing
C) loss-leader pricing
D) target pricing
E) standard markup pricing

F) A) and B)
G) A) and E)

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Cash payments or an extra amount of "free goods" awarded sellers in the channel for undertaking certain advertising or selling activities to promote the product is referred to as a


A) promotional allowance.
B) quantity discount.
C) seasonal discount.
D) purchase inducement.
E) flexible-pricing policy.

F) B) and C)
G) None of the above

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Distinguish between elastic demand and inelastic demand.

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Elastic demand exists when a small perce...

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Target return-on-investment pricing refers to


A) setting a price to achieve an annual target ROA.
B) adding a fixed percentage to the cost of all items in a specific product class.
C) setting prices to achieve a profit that is a specified percentage of the sales volume.
D) setting a price to achieve an annual target ROI.
E) setting a price based on an annual specific dollar target volume of profit.

F) C) and D)
G) A) and E)

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A technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output is referred to as __________.


A) break-even analysis
B) marginal analysis
C) sensitivity analysis
D) market analysis
E) tipping point analysis

F) B) and E)
G) A) and B)

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-Consider the flexible pricing chart above,which shows the results of a National Bureau of Economic Research study of 750,000 car purchases.The data indicate that some groups of car buyers,on average,paid roughly $105,$423,and $483 respectively,for a new car in the $21,000 range than the typical purchaser.Who are the car buyers in C? A) women B) the elderly C) Hispanics D) African Americans E) Asian Americans -Consider the flexible pricing chart above,which shows the results of a National Bureau of Economic Research study of 750,000 car purchases.The data indicate that some groups of car buyers,on average,paid roughly $105,$423,and $483 respectively,for a new car in the $21,000 range than the typical purchaser.Who are the car buyers in "C?"


A) women
B) the elderly
C) Hispanics
D) African Americans
E) Asian Americans

F) D) and E)
G) B) and E)

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Showing 161 - 180 of 381

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