Question 1

Assume that the per unit price of a product is $100,total fixed costs are $50,000,and variable costs are $70 per unit.Find the breakeven point (in both units and dollars).

Accepted Answer

Breakeven point (units)= $50,000/($100 - $70)= 1,667 (rounded)Breakeven point (dollars)= $50,000/[1- ($70/$100)] =$166,667 (rounded)

Question 2

Tariffs make it possible for firms to protect their local markets while still setting prices on domestically produced goods well above world market levels.

Accepted Answer

A) True 
 B)False  True

Question 3

A profit-maximizing price rises to the point at which further:

Accepted Answer

A) increases will cause proportionate decreases in the number of units sold. 
B) decreases will cause disproportionate decreases in the number of units sold. 
C) increases will cause disproportionate decreases in the number of units sold. 
D) increases will cause disproportionate increases in the number of units sold. 
A) increases will cause proportionate decreases in the number of units sold. 
B) decreases will cause disproportionate decreases in the number of units sold. 
C) increases will cause disproportionate decreases in the number of units sold. 
D) increases will cause disproportionate increases in the number of units sold. C

Question 4

Which of the following was rendered invalid by the federal Consumer Goods Pricing Act of 1975?

Accepted Answer

A) The Robinson-Patman Act (1936) 
B) State unfair-trade laws 
C) State fair-trade laws 
D) The Clayton Act (1914) 
A) The Robinson-Patman Act (1936) 
B) State unfair-trade laws 
C) State fair-trade laws 
D) The Clayton Act (1914)

Question 5

Firms who compete internationally face complex decisions regarding pricing decisions.Which method of pricing might be most appropriate for companies who have a reputation as a price leader?​

Accepted Answer

A) ​profitability-based pricing 
B) ​meeting competitor pricing 
C) ​prestige pricing 
D) ​price stability 
A) ​profitability-based pricing 
B) ​meeting competitor pricing 
C) ​prestige pricing 
D) ​price stability

Question 6

When a chain store sells certain products below cost to attract customers,it is practicing a loss-leader price tactic.

Accepted Answer

A) True 
 B)False

Question 7

The only real difference among the multitude of cost-plus pricing techniques is the relative sophistication of the costing procedures employed.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is also known as the Anti-A&P Act?

Accepted Answer

A) The Clayton Act of 1914 
B) The Robinson-Patman Act of 1936 
C) The Miller-Tydings Resale Price Maintenance Act of 1937 
D) The Consumer Goods Pricing Act of 1975 
A) The Clayton Act of 1914 
B) The Robinson-Patman Act of 1936 
C) The Miller-Tydings Resale Price Maintenance Act of 1937 
D) The Consumer Goods Pricing Act of 1975

Question 9

Match each item with the correct statement below.
-_____ is the measure of the responsiveness of purchasers and suppliers to price changes.

Accepted Answer

A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition 
A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition

Question 10

Describe the significance of tariffs in the global market place.

Accepted Answer

In the global marketplace,prices are dir

Question 11

Match each item with the correct statement below.
-_____ are state laws requiring sellers to maintain minimum prices for comparable merchandise.

Accepted Answer

A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition 
A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition

Question 12

Antitrust legislation has eliminated all monopolies including the temporary monopolies,such as those created through patent protection.

Accepted Answer

A) True 
 B)False

Question 13

Your company specializes in manufacturing oversized spa-type bathtubs for the residential market.You have long been a proponent of using a modified breakeven analysis.You think that this approach is essential to your company's success because you operate in the luxury-item marketplace. ​
​Required:
Which of the following situations is the result of a trend that would prompt you to use a modified breakeven analysis rather than the traditional model?

Accepted Answer

A) ​You find that consumer demand is affected by environmentalists' cautions about water usage. 
B) ​You find that the price of advertising has been affected by the move to online publishing. 
C) ​Your employees are due for a significant salary and benefits increase to match those offered by your competitors. 
D) ​The landlord of your manufacturing facility has announced a sizeable rent increase to cover earthquake readiness. 
E) ​You have had an increase in the cost of raw materials, which are based on petroleum-derived products. 
A) ​You find that consumer demand is affected by environmentalists' cautions about water usage. 
B) ​You find that the price of advertising has been affected by the move to online publishing. 
C) ​Your employees are due for a significant salary and benefits increase to match those offered by your competitors. 
D) ​The landlord of your manufacturing facility has announced a sizeable rent increase to cover earthquake readiness. 
E) ​You have had an increase in the cost of raw materials, which are based on petroleum-derived products.

Question 14

Marco decided to write down all his expenses for one day.He had a lot of errands: he filled his car with gas,and he did his grocery shopping for the week,including items to host a TGIF party with beer,wine,and soda.Even though Marco is trying to cut down on his smoking,he did buy a carton of cigarettes.Every time he paid a tax,he recorded it,so his notes include both the words "sales tax" and "excise tax." ​
​Required:
What is the difference between excise taxes and sales taxes?

Accepted Answer

A) ​Sales taxes are levied only on certain items in specific stores. 
B) ​Excise taxes are calculated as a percentage of the base price. 
C) ​Excise taxes can limit sales and reduce product demand. 
D) ​Sales taxes are included in the base price of products. 
E) ​Sales taxes and excise taxes are terms for the same levy. 
A) ​Sales taxes are levied only on certain items in specific stores. 
B) ​Excise taxes are calculated as a percentage of the base price. 
C) ​Excise taxes can limit sales and reduce product demand. 
D) ​Sales taxes are included in the base price of products. 
E) ​Sales taxes and excise taxes are terms for the same levy.

Question 15

Pricing decisions are influenced by a variety of legal constraints imposed by federal,state,and local governments.

Accepted Answer

A) True 
 B)False

Question 16

Match each item with the correct statement below.
-A market structure in which a single seller dominates trade in a good or service for which buyers can find no close substitutes is referred to as a(n)_____.

Accepted Answer

A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition 
A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition

Question 17

Match each item with the correct statement below.
-The pricing strategy that emphasizes benefits derived from a product in comparison to the price and quality levels of competing offerings is called _____.

Accepted Answer

A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition 
A) breakeven analysis 
B) tariffs 
C) unfair-trade laws 
D) incremental-cost pricing 
E) profit maximization
F)demand
G)value pricing
H)monopoly
I)elasticity
J)marginal
K)fair-trade laws
L)yield management
M)oligopoly
N)cost-plus pricing
O)full-cost pricing
P)supply
Q)marginal analysis
R)target-return objectives
S)market-share objectives
T)pure competition

Question 18

Which of the following is an example of a volume pricing objective?

Accepted Answer

A) A value-pricing objective 
B) A profit maximization objective 
C) A market-share objective 
D) A target-return objective 
A) A value-pricing objective 
B) A profit maximization objective 
C) A market-share objective 
D) A target-return objective

Question 19

Customary prices are:

Accepted Answer

A) prices offered at the wholesale level as an incentive to increase product sales. 
B) retail prices consumers expect as a result of tradition and social habit. 
C) prices of products adjusted on the basis of the geographic locations of retail outlets. 
D) prices designed to constrain the amount of products sold to a level desired by the government. 
A) prices offered at the wholesale level as an incentive to increase product sales. 
B) retail prices consumers expect as a result of tradition and social habit. 
C) prices of products adjusted on the basis of the geographic locations of retail outlets. 
D) prices designed to constrain the amount of products sold to a level desired by the government.

Question 20

​Demand for the hiking sandals marketed by the SoftShoe Company is highly elastic.As a pricing strategy consultant,you have been hired to help the firm reduce this elasticity.Choose the recommendation you would be least likely to make.

Accepted Answer

A) ​Introduce a unique sandal that is custom-made for hikers with significant foot problems, like deformed toes or large bunions. 
B) ​Promise to undercut the price of any comparable brand. 
C) ​Market the sandal as a necessity for hikers. 
D) ​Market the sandal as a prestigious luxury for hikers. 
E) ​Increase the sandal's price. 
A) ​Introduce a unique sandal that is custom-made for hikers with significant foot problems, like deformed toes or large bunions. 
B) ​Promise to undercut the price of any comparable brand. 
C) ​Market the sandal as a necessity for hikers. 
D) ​Market the sandal as a prestigious luxury for hikers. 
E) ​Increase the sandal's price.

Assume that the per unit price of a product is $100,total fixed costs are $50,000,and variable costs are $70 per unit.Find the breakeven point (in both units and dollars).

Tariffs make it possible for firms to protect their local markets while still setting prices on domestically produced goods well above world market levels.

A profit-maximizing price rises to the point at which further:

Which of the following was rendered invalid by the federal Consumer Goods Pricing Act of 1975?

Firms who compete internationally face complex decisions regarding pricing decisions.Which method of pricing might be most appropriate for companies who have a reputation as a price leader?

When a chain store sells certain products below cost to attract customers,it is practicing a loss-leader price tactic.

The only real difference among the multitude of cost-plus pricing techniques is the relative sophistication of the costing procedures employed.

Which of the following is also known as the Anti-A&P Act?

Match each item with the correct statement below. -_____ is the measure of the responsiveness of purchasers and suppliers to price changes.

Describe the significance of tariffs in the global market place.

Match each item with the correct statement below. -_____ are state laws requiring sellers to maintain minimum prices for comparable merchandise.

Antitrust legislation has eliminated all monopolies including the temporary monopolies,such as those created through patent protection.

Pricing decisions are influenced by a variety of legal constraints imposed by federal,state,and local governments.

Match each item with the correct statement below. -A market structure in which a single seller dominates trade in a good or service for which buyers can find no close substitutes is referred to as a(n)_____.

Match each item with the correct statement below. -The pricing strategy that emphasizes benefits derived from a product in comparison to the price and quality levels of competing offerings is called _____.

Which of the following is an example of a volume pricing objective?

Customary prices are:

Demand for the hiking sandals marketed by the SoftShoe Company is highly elastic.As a pricing strategy consultant,you have been hired to help the firm reduce this elasticity.Choose the recommendation you would be least likely to make.

Marketing: the Art and Science of Satisfying Customers

Strategic Planning in Contemporary Marketing

The Marketing Environment, ethics, and Social Responsibility

Social Media: Living in the Connected World

E-Business: Managing the Customer Experience

Consumer Behavior

Business-To-Business B2bmarketing

Global Marketing

Market Segmentation, targeting, and Positioning

Marketing Research in the Era of Big Data

Relationship Marketing and Customer Relationship Management Crm

Product and Service Strategies

Developing and Managing Brand and Product Categories

Marketing Channels and Supply Chain Management

Retailers, wholesalers, and Direct Marketers

Integrated Marketing Communications, advertising, and Public Relations

Personal Selling and Sales Promotion

Pricing Strategies

Developing an Effective Marketing Plan

Financial Analysis in Marketing

Filters

Exam 18: Pricing Concepts

Assume that the per unit price of a product is $100,total fixed costs are $50,000,and variable costs are $70 per unit.Find the breakeven point (in both units and dollars).

Tariffs make it possible for firms to protect their local markets while still setting prices on domestically produced goods well above world market levels.

A profit-maximizing price rises to the point at which further:

Which of the following was rendered invalid by the federal Consumer Goods Pricing Act of 1975?

Firms who compete internationally face complex decisions regarding pricing decisions.Which method of pricing might be most appropriate for companies who have a reputation as a price leader?​

When a chain store sells certain products below cost to attract customers,it is practicing a loss-leader price tactic.

The only real difference among the multitude of cost-plus pricing techniques is the relative sophistication of the costing procedures employed.

Which of the following is also known as the Anti-A&P Act?

Match each item with the correct statement below. -_____ is the measure of the responsiveness of purchasers and suppliers to price changes.

Describe the significance of tariffs in the global market place.

Match each item with the correct statement below. -_____ are state laws requiring sellers to maintain minimum prices for comparable merchandise.

Antitrust legislation has eliminated all monopolies including the temporary monopolies,such as those created through patent protection.

Pricing decisions are influenced by a variety of legal constraints imposed by federal,state,and local governments.

Match each item with the correct statement below. -A market structure in which a single seller dominates trade in a good or service for which buyers can find no close substitutes is referred to as a(n)_____.

Match each item with the correct statement below. -The pricing strategy that emphasizes benefits derived from a product in comparison to the price and quality levels of competing offerings is called _____.

Which of the following is an example of a volume pricing objective?

Customary prices are:

​Demand for the hiking sandals marketed by the SoftShoe Company is highly elastic.As a pricing strategy consultant,you have been hired to help the firm reduce this elasticity.Choose the recommendation you would be least likely to make.

Marketing: the Art and Science of Satisfying Customers

Strategic Planning in Contemporary Marketing

The Marketing Environment, ethics, and Social Responsibility

Social Media: Living in the Connected World

E-Business: Managing the Customer Experience

Consumer Behavior

Business-To-Business B2bmarketing

Global Marketing

Market Segmentation, targeting, and Positioning

Marketing Research in the Era of Big Data

Relationship Marketing and Customer Relationship Management Crm

Product and Service Strategies

Developing and Managing Brand and Product Categories

Marketing Channels and Supply Chain Management

Retailers, wholesalers, and Direct Marketers

Integrated Marketing Communications, advertising, and Public Relations

Personal Selling and Sales Promotion

Pricing Strategies

Developing an Effective Marketing Plan

Financial Analysis in Marketing

Filters

Firms who compete internationally face complex decisions regarding pricing decisions.Which method of pricing might be most appropriate for companies who have a reputation as a price leader?

Demand for the hiking sandals marketed by the SoftShoe Company is highly elastic.As a pricing strategy consultant,you have been hired to help the firm reduce this elasticity.Choose the recommendation you would be least likely to make.