mini test 7 - Mini test 7 The disadvantage to the to...

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Mini test 7 The disadvantage to the __________ to setting prices is that it doesn't take into account whether customers are willing to pay the price your need to charge? e. Cost-based approach BruceCo is planning on selling coffee cups for $14 each. The company can buy the cups for $2.00 and have them printed for $1.50. The package costs fifty cents. There is a one-time set up charge from the printer of $1,000. How many coffee cups will BruceCo have to sell in order to break even? e. 100 Bruce is planning on selling sandwiches in class for $5 each. Food costs are $4. He will also need to buy an insulated cooler to store the sandwiches. This cooler costs $10. How many sandwiches will Bruce have to sell in order for this project to break even? b. 10 According to the information in class, the fundamental issue in geographic pricing tactics is? b. Whether the buyer or the seller pays for the cost of transporting the product to the customer. Colgate Palmolive created a special package that included a free regular-sized tube of toothpaste when you purchase a family-sized tube of toothpaste at the regular price. This is an example of? a. Price bundling Many airlines advertise low prices on the internet. When you actually book the ticket, you may find that there are destination charges, service, fees and other costs that significantly increase the cost of the ticket. The airlines use this _________ tactic to make their prices appear to be lower to customers who are comparing prices. c. Multiple price The __________ to setting prices is based on understanding an organization's cost structure and profit requirements? c. Cost-based approach For many products such as candy bars, there is a price consumers expect to pay for the product. Retailers using the _____________ to setting prices will offer the product at a very low price in order to attract customers into their store? d. loss-leader approach The ____________ approach to new product pricing sets prices high in order to recover development costs more quickly? e. Skimming In general, the greater the _______ for a product, the higher the price you can charge for the product. e. demand Last year, BruceCo sold 1000 coffee cups for $10 each. If the cost for each cup was $4.70, what was the total revenue for BruceCo? 1
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a. $10,000 If the demand curve for a product shifts outward then? a. Customers will buy more at every price point _________ is what is given up in an exchange to acquire a good or service? b. Price _____________ are factors that limit the range of prices a firm may set for its products? e. pricing constraints It has been said that no two people on an airplane pay the same price for a ticket. Prices tend to be lower if you are willing to book you trip well in advance and tend to be much higher if you have to book your trip on short notice. A non-refundable ticket costs less than a refundable ticket. Airlines use this ___________ in order to maximize the revenue they earn from each flight?
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