Suppose a Shop Owner Sets a Target ROI of 10

Multiple Choice

Suppose a shop owner sets a target ROI of 10 percent, which is twice that achieved the previous year. She considers raising the average price of a framed picture to $54 or $58-up from last year's average of $50. In order to still achieve her target, she might:

A) add value to the framed picture that adds minimal fixed and variable costs, yet consumers are willing to accept
B) use noticeable cheaper quality materials to lower her costs
C) mislabel her price of goods in her income statement to reflect the targeted ROI
D) include bundle pricing to encourage consumers to purchase extra items