AEM1200-0202Q - Class W 2/2 Question Set AEM1200 Spring...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
AEM1200 Spring 2011 Pedro David Pérez 1. Helen is considering adding a rack of greeting cards to her product offerings at Litton Books Unlimited. Her fixed costs associated with adding the greeting cards would be $300. Variable costs per card are $1 each. The greeting cards will sell for $2 each. Helen's break-even point would occur at ________ cards sold. a. 100 b. 125 c. 150 d. 300 e. 600 2. As firms develop their marketing mix, it is important to remember that: a. Firms are often restricted in creating pricing strategies by relevant government rules and guidelines. b. Instincts and past history are the best guides in determining price. c. Prices must be linked directly to the cost of production. d. Regardless of the strategy used, prices ultimately reflect the forces of supply and demand. When putting together a business plan, entrepreneurs must present a short term break-even analysis of their idea. Match the following revenue and costs aspects of a potential startup with their break-even analysis counterparts 3. Cost of goods sold 4. Revenue model 5. Startup investment 6. Target segment a. Break even point b. Fixed cost c. Price d. Variable cost 7. Cost is the most important determinant of price. a. True b. False 8. Cornell’s Summer Session offers courses on the basis of their potential to pay for themselves. Suppose a three credit course where the instructor will be paid $5,000; and where the Summer Session office takes 50% of tuition as payment for support, usage, etc. Assume tuition of $1,000/credit. How many students should enroll to make the course
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/10/2011 for the course AEM 101 taught by Professor N/a during the Spring '11 term at Cornell University (Engineering School).

Page1 / 4

AEM1200-0202Q - Class W 2/2 Question Set AEM1200 Spring...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online