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
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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
The key to perceived-value pricing is to ________.
A. reengineer the company's operations
B. deliver more unique value than competitors
C. adopt subtle marketing tactics compared to competitors
D. deliver more value but at a lower cost
E. invest heavily in advertising in order to convey superior value
________ pricing is a matter of reengineering the company's operations to become a low-cost producer without sacrificing quality.
A. Value
B. Going-rate
C. Auction-type
D. Markup
E. Perceived-value