Marketing Exam #3

The fixed cost in manufacturing a single LED monitor is $40 and the variable cost is $12. If te company expects to manufacture 5,000 monitors, the total costs would be _________.

$260,000

Why is markup pricing most likely impractical?

The method ignores demand and competitor prices.

Which of the following processes does value-based pricing reverse?

cost-based pricing

Product costs set the ceiling for prices. T/F

false

Which of the following involves setting prices based on a rival firm's strategies, costs, prices, and market offerings?

competition-based pricing

When performing a break-even analysis, the manufacturer should consider all of the following EXCEPT _________.

competitors' pricing

A demand curve shows the number of units the market will buy in a given time period at different prices that could be charged. T/F

true

Costs that change with the level of production are referred to as __________________.

variable costs