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