Clicker Questions as of 3-23-17

Each month, the owner of a car wash pays $2,500 in rent, $500 utilities, $750 interest on the business loan, an insurance premium of $200, and $250 on advertising on local bus routes. A full-service car wash is priced at $10.50. Unit variable costs for the car was are $7.50. At what level of revenue will the car wash break even?

2,500+500+750+200+250=4,200 10.50-7.50=3 4,200 divided by 3 equals 1,400 1,400 14,700

The manager of a small gasoline station observes that while gasoline sales have been steady, the service side of the business has declined, and mechanics are often idle. He decides to offer a promotion - $20 off coupon for an oil change that is to be mailed to 800 households within a two-mile radius from the gas station. The cost of printing and mailing is $1,000. The normal cost of an oil change is $40. Materials and labor per oil change cost is $15. How many additional maintenance service jobs must result for the promotion break-even?

200 Jobs

How to create brand personality?

By connecting the brand name and 4Ps to customers' values

With cost-oriented approaches to pricing, a price setter stresses the _____________ side of pricing problem, not the ___________ side.

Cost, Demand or Cost, Profit

Suppose you sell ice cream in Pearl Street Mall on weekends. Your vanilla ice creams are popular and sell for $10 at which 100 its are usually purchased. Your experience says when you drop the price to $9 you sell 120 ice cream. Which of the following is true about the vanilla ice cream?

It is price elastic