smartbook Wk 4 - Apply: Summative Assessment: Washburn Guitars: Pricing Decisions and Diversity
If the mass-produced guitar sells 100,000 units annually at $175 per guitar, what is the total revenue?
$17,500,000
Washburn's fixed costs for producing mass-produced guitars are $500,000. Its variable costs are $150 per guitar. If it prices these guitars at $250, what is the break-even quantity for this line?
5,000 guitars
If employees of Washburn guitars want to travel to Asia to meet with guitar craftspeople, what is the best choice of who to send if diversity is considered a primary factor in the visit?
A team comprised of a diverse group of gender, race, sexual orientation, economic backgrounds, educational attainment and generational differences
________ is not an important factor for Starbucks' expansion in Chile.
Expanding more rapidly
As Starbucks expands in Chile, the company wants store décor and paper goods used to be controlled by
Starbucks corporation.
Starbucks puts a major focus on
a consistent experience from store to store.
If Washburn Guitars were to lower the price of the Maya Pro DD75 to $2,499 from $2,699, sales of the guitar would increase 30 percent. This illustrates
a product with elastic demand.
Starbucks wants future stores in Chile to serve
imported, roasted coffee from Starbucks only.
With the typical downward-sloping demand curve like the one shown for Washburn, as price per unit falls, demand
increases.
Starbucks wants to make sure that ________ has/have the most brand control.
the Starbucks corporation
Washburn Guitars makes signature series guitars to enhance the credibility of the Washburn brand. Creating signature series guitars would have a positive effect on all of the following except
unit variable cost.
Washburn has four distinct price points for its guitar lines—entry, intermediate, professional, and collectors—based on the fact that each line has very different production costs, market demand, and sales level. Thus, Washburn has implemented a ________ pricing objective.
unit volume
