module 10 review

Lady Marion Seafood, Inc., sells five-pound packages of Alaskan salmon. Assume that its unit variable cost per package is $30 and its fixed cost is $250,000. It wants a target profit of $38,000 based on a volume of 16,000 packages. What should the firm charge for a five-pound package of salmon?

$48.00

Which of the following statements regarding price lining is most accurate?

Price lining assumes that demand is elastic at each price point but inelastic between price points.

Which of the following would be an example of a constraint in Step 1 of the price-setting process?

We're going to face some stiff competition.

In some cases, manufacturers design products for different price points and retailers apply ________ to achieve the three or four different price points offered to consumers.

approximately the same markup percentages

Which of the following type of business is most likely to use cost-plus-percentage-of-cost pricing?

architect

All of the following are examples of pricing objectives except

competitors' prices.

Price lining is considered to be a ________ approach to pricing.

demand-oriented

Which of the following is a cost-oriented approach to pricing?

experience curve pricing

Target return-on-investment (ROI) is frequently used by

public utilities.

Which of the following is the fourth step in setting a final price for a product?

select an approximate price level

A movement along a demand curve (up or down) for a product occurs ________, assuming that other factors such as consumer tastes, price and availability of substitutes, and consumer incomes remain unchanged.

when its price is lowered or increased and the quantity demanded for it correspondingly increases or decreases