5.01

A business brought 144 items at $6.50 each and 120 items at $3.75 each. With a 10% off-season discount, the total cost to the business is:

$1247.40

Which of the following is an appropriate selling price for a product with total costs of $10 and a gross margin of $5:

$15

Calculate the break-even point in dollars if a business had total fixed costs of $875000; and the unit selling price is $1200; and the variable cost per unit is $700.

$2100000

What is the final cost to the business of a product priced at $40 with a 20% trade discount?

$32

Establish a selling price from the following information: cost, $8.45; operation expenses, $0.50; and profit, $0.80

$9.75

What is the break-even point in units for a business whose total fixed costs are $325000, selling price per unit is $18, and variable cost per unit is $15.50?

130000

Clyde rented an ice-cream truck in order to earn money for college in the fall. His truck rental is $200 per week and has a yearly license fee of $52. It costs him $200 for 500 ice-cream bars that he plans to sell for $1.10 each. How many ice-cream bars must Clyde sell each week in order to reach the break-even point?

288

Radio commercials are a form of advertising that is transmitted through _______ media.

Broadcast

Businesses receive positive feedback about the effectiveness of their promotional messages when consumers:

Buy their products

What primary factors do business owners consider when determining the ceiling prices of their products?

Consumer perceptions and demand

Businesses should set their selling prices at a level that will:

Cover expected markdowns and expenses.

One of the main goals of promotion in marketing is to:

Create desire

Text-message advertising is the most likely to be successful when the ads are:

Delivered to the cell-phone numbers of people interested in the product

When the costs of raw materials increase considerably, a business is likely to:

Increase the selling price of a product

An important objective of promotion is to ______ buyers.

Inform

When a business places a new product on the market, each element of the promotional mix should be designed to:

Inform consumers about the existence of the product

Which of the following is a use of product promotion:

Informing consumers about product features

A company produces an advertisement that informs consumers about its commitment to recycling materials and controlling pollution. This is an example of:

Institutional promotion

One reason why the target market of a business affects its pricing is because consumers in each target market

Judge the value of products differently

A business determines the final cost of a product purchased for resale by subtracting allowed discounts and transportation charges from the:

List price

Which of the following is an example of a business using a flexible pricing policy:

Lowering prices during bad economic times

During which stage of the product life cycle is a business likely to try to stabilize a product's price?

Maturity

Public-service promotions often are used to inform consumers about________ issues.

Noncontroversial

An ad for Kleenex in Ladies Home Journal is an example of what type of advertising?

Product

Which of the following are internal factors that affect the way a business uses promotional tools:

Product and price

Newspapers and magazines are categorized as _____ media

Publications

The local newspaper ran a story about Amy's Shoe Store and its donation of 100 pairs of shoes to those in need. This act by the local newspaper is an example of:

Publicity

The use of samples or cents-off coupons on grocery items is an example of:

Sales promotion

Why do some new companies set their selling prices as low as they can?

To get market share as fast as possible

What is the purpose of sales-oriented pricing objectives?

To increase the total amount of sales

Why would a manager of a local business keep tract of the prices that similar businesses in the area are charging?

To remain competitive

The price function often influences the place function be determining:

Where the product is sold

Repeated exposure to the largest, most diverse population of people is a benefit of _____ advertising

out-of-home