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Unformatted text preview: Name___________________________ Week 11 Quiz 9 Chapter 12 Please circle the best answer to each of the following questions. 1. A company that manages apartments decides to buy 17 new dishwashers at a list price of $750, each as replacements for old dishwashers in a small apartment complex it owns. Because the company is buying more than 10 dishwashers, it is eligible for a $150 per unit quantity discount. Financing charges total $20 per unit. The company gets $10 per dishwasher for the 17 dishwashers traded in. What is the actual price the company will pay for each dishwasher? a. $590 b. $600 c. $610 d. $730 e. $760 2. Ships Ahoy is a small company that makes model sailboat kits priced at $120 each. (There is no quantity discount.) The costs of the materials that go into each kit are $45. It costs $5 in labor to assemble a kit. The company has monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising in sailing and hobby magazines, and $3,500 for the monthly salary...
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- Fall '08
- Pricing, unit variable costs, experience curve pricing, Ace Shoe Company, quantity discount, Ships Ahoy