Multiple Choice
As the marketing and sales manager,you are in charge of setting the selling prices of prize-winning music boxes with changeable songs.After you explained two cost-plus approaches to price setting,the CEO chose the straightforward approach of full-cost pricing.The next day,you received an unexpected order for 10,000 units from a Swiss contact with a tight deadline.
Required:
What information do you need immediately to arrive at a selling price that you can justify to the CEO?
A) value of resources consumed in the production of the music boxes
B) overhead expenses, profit margin, and direct cost per music box
C) fixed costs of production, variable costs, and revenue
D) manufacturing capacity and customer's price point of willingness to pay
E) acceptable loss-leader pricing, prescribed rate of return, and financing
Correct Answer:

Verified
Correct Answer:
Verified
Q23: A cost that changes with the level
Q83: What are the major weaknesses of traditional
Q84: Unfair-trade laws were intended to protect small
Q126: The _ of demand is the percentage
Q147: A shortcoming of the breakeven model is
Q214: Prestige pricing objectives emphasize:<br>A)quality and exclusivity.<br>B)revenue maximization.<br>C)cost
Q216: A major assumption of the economic theory
Q217: One of the advantages of the full-cost
Q220: Match each item with the correct statement
Q222: Identify and briefly describe the legal constraints