Assume That Nike Variety Tennis Shoes Have Variable Costs of $6

Multiple Choice

Assume that Nike Variety tennis shoes have variable costs of $6 and sell for $24. Also assume that Nike Wimbledon tennis shoes have variable costs of $38 and sell for $48, but when fixed overhead is added, the shoe is unprofitable by $2 per pair. Which statement is most accurate regarding Nike's pricing approach with these two products?

A) Demand for each shoe is unrelated to price.
B) Nike is using a cost-plus-percentage-of-cost pricing strategy.
C) Nike is using a product-line pricing strategy.
D) Demand for each shoe is unrelated to product quality.
E) Consumers do not use price as an indication of quality.