Which of the following is the most elementary pricing method?
A. value pricing
B. going-rate pricing
C. markup pricing
D. target-return pricing
E. perceived-value pricing
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Despite its weaknesses, markup pricing remains popular for which of the following reasons?
A. Sellers can determine demand much more easily than they can estimate costs.
By tying the price to cost, the pricing task becomes more sophisticated.
C. When all firms in the industry use markup pricing, price competition flourishes.
D. Sellers take advantage of buyers when the latter's demand becomes acute.
E. Many people feel that cost-plus pricing is fairer to both buyers and sellers.
A manufacturer has invested $750,000 in a new product and wants to set a price to earn a 15 percent ROI. The cost per unit is $18 and the company expects to sell 50,000 units in the first year. Calculate the company's target-return price for this product.
A. 18.10
B. 18.23
C. 20.25
D. 20.70
E. 25.50
An umbrella manufacturing company's fixed costs are $275,000. The variable cost per unit is $5 and each umbrella is sold at $10. How many units should the firm sell in order to break even? (10x=275000+5x)
A. 1819.00
B. 5500.00
C. 18000.00
D. 27500.00
E. 55000.00
________ pricing takes into account a host of inputs, such as the buyer's image of the product performance, the channel deliverables, the warranty quality, customer support, and attributes such as the supplier's reputation, trustworthiness, and esteem.
A. Perceived-value
B. Value
C. Going-rate
D. Auction-type
E. Markup