Question 1

Shoe Company sells heel replacement kits for men's shoes.It has fixed costs of $6 million and unit variable costs of $5 per pair.Ace would like to earn a profit of $2 million; how many pairs must they sell at a price of $15?

Accepted Answer

A)   100,000 kits
B)   400,000 kits
C)   600,000 kits
D)   800,000 kits
E)   1,400,000 kitsF) B) and D)
G) C) and E)

Question 2

cost concepts are important in pricing decisions: total cost,fixed cost,variable cost,marginal cost,and __________.

Accepted Answer

A)   dividend cost
B)   liquidity cost
C)   discretionary cost
D)   unit variable cost
E)   elastic costF) B) and E)
G) All of the above

Question 3

Which of the following statements about price elasticity of demand is most accurate?

Accepted Answer

A)   Price elasticity with unitary demand is less than 1.
B)   The more substitutes a product has, the less likely it is to be price elastic.
C)   Unitary demand represents the relationship between the cash outlay necessary to purchase a product relative to a person's disposable income.
D)   With inelastic demand, reducing price will result in a decrease of total revenue.
E)   With inelastic demand, reducing price will result in an increase in total revenue, although not necessarily an increase in profit.F) A) and C)
G) None of the above

Question 4

break-even chart refers to a graphic presentation

Accepted Answer

A)   that shows the maximum number of units that will be sold at a certain price.
B)   of a break-even analysis that shows when total revenue and total cost intersect to identify profit or loss for a given quantity sold.
C)   that relates variable costs in terms of product or service substitutes in order to determine which items or services would least affect total revenues.
D)   that relates profits and revenues versus total costs in order to determine the time frame in which a company could achieve profitability.
E)   in the form of a scatter graph used to identify specific activities or items that are creating the greatest return on investment.F) D) and E)
G) A) and C)

Question 5

While consumer tastes and price and availability of similar products determine what consumers want to buy,consumer income determines

Accepted Answer

A)   where they buy.
B)   the degree of brand loyalty.
C)   the degree of repeat buys.
D)   what they can buy.
E)   their desire to buy.F) C) and E)
G) A) and B)

Question 6

a marketing viewpoint,__________ is money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

Accepted Answer

A)   the value
B)   price
C)   barter
D)   currency
E)   a tariffF) A) and C)
G) B) and D)

Question 7

Which of the following is a special type of price?

Accepted Answer

A)   college tuition
B)   operating costs
C)   liquidity
D)   value
E)   stockholders' equityF) C) and D)
G) A) and B)

Question 8

Apple iTunes has an advantage over Amazon as an online music supplier because

Accepted Answer

A)   it has a larger market share and has tied its iTunes software to products like iPods.
B)   people aren't aware that Amazon sells music.
C)   most digital songs play only on iTunes-compatible devices like iPods.
D)   it reached the market first.
E)   it has a slicker user interface.F) A) and B)
G) B) and E)

Question 9

Florida Power & Light,an electric power company,is the only source of electricity for consumers in most parts of the Florida panhandle.As a(n) __________,the company receives approval from the state utility commission for the rates it can charge.

Accepted Answer

A)   free enterprise firm
B)   oligopoly
C)   monopolistic competitor
D)   competitor in a pure competition
E)   pure monopolyF) B) and C)
G) C) and D)

Question 10

competitive market circumstances are such that there are few sellers who are sensitive to each other's prices,and the purpose of advertising is to inform but avoid price competition,then __________ must exist in the industry.

Accepted Answer

A)   a pure monopoly
B)   monopolistic competition
C)   pure competition
D)   an oligopoly
E)   oligopolistic competitionF) A) and E)
G) A) and C)

Question 11

Marketing managers often use break-even analysis to analyze the relationship between total revenue and total cost to determine profitability at various levels of output.What is the break-even formula? Use the formula to calculate how many DVD players a dealer must sell if her fixed costs are $100,000,unit variable costs are $150,and the selling price is $200.

Accepted Answer

The break-even point (BEP)is t...

Question 12

use of "special fees" and "surcharges" is driven by consumers' zeal for low prices and __________.

Accepted Answer

A)   the ease of making price comparisons on the Internet
B)   value, the idea of getting "more" for their money
C)   the need for extra accessories
D)   avoiding state sales taxes from Internet purchases
E)   a dislike of price haggling or negotiatingF) A) and B)
G) B) and E)

Question 13

Calculate a firm's total revenue (TR) using the following information: the unit price (P) for a product is $40; the quantity sold (Q) is 2,000; the fixed cost (FC) is $50,000; and the variable cost (VC) is $20,000.

Accepted Answer

A)   $10,000
B)   $50,000
C)   $110,000
D)   $150,000
E)   cannot be determined with the information providedF) D) and E)
G) A) and B)

Question 14

book on how to invest in collectibles spends several weeks on The New York Times bestseller list.The paperback book was originally released for $9.99.A reduction of the price to $9.79 had no effect on total revenue,which remained the same.This is due to the book having

Accepted Answer

A)   inelastic demand.
B)   elastic demand.
C)   null elasticity.
D)   unitary demand.
E)   subsidized elasticity.F) A) and B)
G) A) and C)

Question 15

Which of the following would be an example of an objective in Step 1 of the price-setting process?

Accepted Answer

A)   "We need to set an initial price of $259 dollars per unit."
B)   "We need to find the least expensive distributor."
C)   "We need to make a profit of at least $1.2 million."
D)   "We need to make allowances for large quantity orders."
E)   "We need to increase the price during the holiday shopping season."F) A) and D)
G) C) and D)

Question 16

variable cost refers to variable cost expressed

Accepted Answer

A)   as the sum of all units sold.
B)   on a per unit basis for a product.
C)   as a percentage of total sales.
D)   as a percentage of fixed costs.
E)   as a percentage of total costs.F) B) and D)
G) None of the above

Question 17

Several companies produce latex gloves that are used in a variety of different industries.If one of the glove manufacturers decreases its price by just a few percentage points,it will result in a significant increase in quantity demanded.The demand for latex gloves is

Accepted Answer

A)   synergistic.
B)   inelastic.
C)   unitary.
D)   elastic.
E)   entropic.F) B) and C)
G) A) and D)

Question 18

Which of the following would be an example of an objective in Step 1 of the price-setting process?

Accepted Answer

A)   "We need to find the least expensive distributor."
B)   "We need to make allowances for large quantity orders."
C)   "We need to increase the price during the holiday shopping season."
D)   "We need to forget profits right now; just make sure we break even."
E)   "We need to hire a professional accountant."F) A) and E)
G) A) and D)

Question 19

firm's profit objective is often measured in terms of ROA.The acronym ROA stands for __________.

Accepted Answer

A)   return on assets
B)   risk opportunity assessment
C)   return of allowances
D)   return on average equity
E)   risk opportunity analysisF) A) and E)
G) A) and D)

Question 20

Barter is the practice of exchanging products and services for other products and services rather than for ___________.

Accepted Answer

A)   value
B)   ideas
C)   promises
D)   tariffs
E)   moneyF) All of the above
G) A) and B)

Exam 13: Building the Price Foundation

Which of the following is a special type of price?

Correct Answer
verified

Barter is the practice of exchanging products and services for other products and services rather than for ___________.

Correct Answer
verified

Apple iTunes has an advantage over Amazon as an online music supplier because

Correct Answer
verified

book on how to invest in collectibles spends several weeks on The New York Times bestseller list.The paperback book was originally released for $9.99.A reduction of the price to $9.79 had no effect on total revenue,which remained the same.This is due to the book having

Correct Answer
verified

Which of the following statements about price elasticity of demand is most accurate?

Correct Answer
verified

variable cost refers to variable cost expressed

Correct Answer
verified

Which of the following would be an example of an objective in Step 1 of the price-setting process?

Correct Answer
verified

a marketing viewpoint,__________ is money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

Correct Answer
verified

use of "special fees" and "surcharges" is driven by consumers' zeal for low prices and __________.

Correct Answer
verified

cost concepts are important in pricing decisions: total cost,fixed cost,variable cost,marginal cost,and __________.

Correct Answer
verified

Calculate a firm's total revenue (TR) using the following information: the unit price (P) for a product is $40; the quantity sold (Q) is 2,000; the fixed cost (FC) is $50,000; and the variable cost (VC) is $20,000.

Correct Answer
verified

firm's profit objective is often measured in terms of ROA.The acronym ROA stands for __________.

Correct Answer
verified

competitive market circumstances are such that there are few sellers who are sensitive to each other's prices,and the purpose of advertising is to inform but avoid price competition,then __________ must exist in the industry.

Correct Answer
verified

Which of the following would be an example of an objective in Step 1 of the price-setting process?

Correct Answer
verified

Several companies produce latex gloves that are used in a variety of different industries.If one of the glove manufacturers decreases its price by just a few percentage points,it will result in a significant increase in quantity demanded.The demand for latex gloves is

Correct Answer
verified

Correct Answer
verified
The break-even point (BEP)is t...
View Answer

Florida Power & Light,an electric power company,is the only source of electricity for consumers in most parts of the Florida panhandle.As a(n) __________,the company receives approval from the state utility commission for the rates it can charge.

Correct Answer
verified

Shoe Company sells heel replacement kits for men's shoes.It has fixed costs of $6 million and unit variable costs of $5 per pair.Ace would like to earn a profit of $2 million; how many pairs must they sell at a price of $15?

Correct Answer
verified

break-even chart refers to a graphic presentation

Correct Answer
verified

While consumer tastes and price and availability of similar products determine what consumers want to buy,consumer income determines

Correct Answer
verified

Exam 13: Building the Price Foundation

Which of the following is a special type of price?

Correct AnswerverifiedShow Answer

Barter is the practice of exchanging products and services for other products and services rather than for ___________.

Correct AnswerverifiedShow Answer

Apple iTunes has an advantage over Amazon as an online music supplier because

Correct AnswerverifiedShow Answer

book on how to invest in collectibles spends several weeks on The New York Times bestseller list.The paperback book was originally released for $9.99.A reduction of the price to $9.79 had no effect on total revenue,which remained the same.This is due to the book having

Correct AnswerverifiedShow Answer

Which of the following statements about price elasticity of demand is most accurate?

Correct AnswerverifiedShow Answer

variable cost refers to variable cost expressed

Correct AnswerverifiedShow Answer

Which of the following would be an example of an objective in Step 1 of the price-setting process?

Correct AnswerverifiedShow Answer

a marketing viewpoint,__________ is money or other considerations (including other products and services) exchanged for the ownership or use of a product or service.

Correct AnswerverifiedShow Answer

use of "special fees" and "surcharges" is driven by consumers' zeal for low prices and __________.

Correct AnswerverifiedShow Answer

cost concepts are important in pricing decisions: total cost,fixed cost,variable cost,marginal cost,and __________.

Correct AnswerverifiedShow Answer

Calculate a firm's total revenue (TR) using the following information: the unit price (P) for a product is $40; the quantity sold (Q) is 2,000; the fixed cost (FC) is $50,000; and the variable cost (VC) is $20,000.

Correct AnswerverifiedShow Answer

firm's profit objective is often measured in terms of ROA.The acronym ROA stands for __________.

Correct AnswerverifiedShow Answer

competitive market circumstances are such that there are few sellers who are sensitive to each other's prices,and the purpose of advertising is to inform but avoid price competition,then __________ must exist in the industry.

Correct AnswerverifiedShow Answer

Which of the following would be an example of an objective in Step 1 of the price-setting process?

Correct AnswerverifiedShow Answer

Several companies produce latex gloves that are used in a variety of different industries.If one of the glove manufacturers decreases its price by just a few percentage points,it will result in a significant increase in quantity demanded.The demand for latex gloves is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe break-even point (BEP)is t...View AnswerShow Answer

Florida Power & Light,an electric power company,is the only source of electricity for consumers in most parts of the Florida panhandle.As a(n) __________,the company receives approval from the state utility commission for the rates it can charge.

Correct AnswerverifiedShow Answer

Shoe Company sells heel replacement kits for men's shoes.It has fixed costs of $6 million and unit variable costs of $5 per pair.Ace would like to earn a profit of $2 million; how many pairs must they sell at a price of $15?

Correct AnswerverifiedShow Answer

break-even chart refers to a graphic presentation

Correct AnswerverifiedShow Answer

While consumer tastes and price and availability of similar products determine what consumers want to buy,consumer income determines

Correct AnswerverifiedShow Answer

Correct Answer
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verified
The break-even point (BEP)is t...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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