marketing quiz 19

If a retailer orders a quantity of merchandise to be delivered to his store in Phoenix and is quoted a price that does not include shipping charges, the retailer is paying a(n) _________ price

F.O.B. factory

At what point does a firm maximize profit

The point at which marginal cost equals marginal revenue

In conducting an assessment of her accounting firm, Paige discovers the following annual results: average charge per customer = $250; rent = $12,000; total billings = $150,000; employee compensation and benefits = $60,000; and other costs = $110,000. Given these results, Paige's profits would equal

a loss of $32,000

Lucy buys a new dress at T. J. Maxx that has a price tag with "Compare at $150. Our Price is $89.99." This is an example of the use of

an external reference price

The oldest form of exchange is known as

bater

Jared is developing a business plan for a new type of bicycle helmet. He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product. Jared is interested in finding the

breakeven point

Which of the following is not a method used to determine transfer prices

discounted standard cost

For most firms in the United States, demand curves are

downward sloping

Mars Petcare is one of the world's largest pet food manufacturers. If the strategic goal for Mars Petcare in the coming year was to _____________ in North America, it should use temporary price reductions

gain market share

If the terms of a business exchange are 2/10 net 30, this means that the transaction

involves a cash discount if paid within ten days

French Quarter Inns drops the price of a suite from $225 to $195 per night and experiences a reduction in the quantity of rooms demanded of an average of five per night. This is an indication that suites at this hotel are apparently an example of a(n) ________ product

prestige

For most consumers, there is an assumed relationship between

price and quality

A measure of sensitivity of demand in relation to changes in price is

price elasticity of demand

Advertisements for Suave shampoos emphasize that other shampoos may cost more but don't work any better than Suave. In this example, Suave is competing on the basis of

product price

If Ralph Lauren offers to reduce the price of its women's blazers when retailers buy more than 100 pieces, the designer is offering a ___________ discount

quantity

Monopolies usually keep their prices at a level that generate a reasonable, but not excessive, return primarily because

they want to avoid government regulations on their pricing

Suppose that the frozen foods division of Swanson purchases food trays and boxes from the packaging division. The form of pricing used th charge the frozen foods division is called

transfer pricing

Suppose Tommy Hilfiger is introducing a new line of men's ties. The designer believes that the target market for these ties comprises men who are very status-conscious. In keeping with this assessment, department stores selling the ties should

use price symbolically

the Palasi Candy Company is a small business located in the northeastern united States. The owner of Palasi Candy is calculating the projected costs for the coming year. There is rent for the building, salaries for the retail employees, raw materials of sugar, chocolate, and other ingredients, wrappers for packaging of individual pieces of candy, boxes, and radio advertising. Palasi's ____________ are most likely to be the raw materials of sugar, chocolate, and other ingredients, as well as the wrappers

variable costs

The amount of profit a channel member expects depends on

what the intermediary could earn if it were handling a competing product instead