GBS151 Chapter 12 WORKSHEET (14 pts) - what two operaTons...

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Chapter 12: Pricing, Distributing, and Promoting Products WORKSHEET (14pts) Pages 298-323 1. The two pricing objectives that companies use are: profit-maximizing objectives and market share objectives 2. What are the two price-setting tools used? Cost-oriented pricing and breakeven analysis 3. Define markup: amount added to an item’s purchase cost to sell it at a profit 4. If you sell a product for $20 and your markup is $9, what is your markup percentage? 9/20*100%= 45% 5. Explain odd-even pricing: psychological pricing tactic based on the premises that customers prefer prices not stated in even dollar amounts 6. U.S. Retail stores can be described by using three classifications, which are: Product-line retailers, bargain retailers, and convenience stores 7. Discount houses began by selling large numbers of items at substantial price reductions. 8. Electronic retailing allows sellers to inform, sell to and distribute to consumers via the Web. 9. Physical distribution refers to the activities needed to move products from manufacturer to customer and includes
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Unformatted text preview: what two operaTons? Warehousing and transportaTon operaTons 10. ±he fve most powerFul promoTonal tools are: AdverTsing publicity, adverTsing personal selling, personal selling, sales promoTon, and adverTsing personal selling 11. ±he oldest and most expensive Form oF sales is: personal selling 12. InFormaTon about a company, a product, or an event transmi³ed by the general mass media to a³ract public a³enTon is known as: publicity 13-14 Show the Formula and your calculaTons in solving the Following problem: Suppose that a small publisher selling to book distributors has fxed operaTng costs oF $600,000 each year and variable costs oF $3.00 per book. How many books must the frm sell to break even iF the selling price oF each book is $6.00? Break-even units=±ixed costs/(selling price-variable costs) Break-even units=$600,000/($6-$3)=200,000 books....
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