Marketing Final Exam

Gazebos and the total costs changed from 9000 to 10500

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Unformatted text preview: Reflective MSC: BLOOMS Knowledge 66. Monthly output at Leisure-Time, Inc. changed from 12 to 13 prefabricated gazebos, and the total costs changed from $9,000 to $10,500. What is the marginal cost for this company? a. $1,500 b. $2,000 c. d. e. $1,200 $10,000 $12,000 ANS: A Marginal cost is the change in total costs associated with a one-unit change in output. PTS: 1 REF: 309 KEY: CB&E Model Pricing OBJ: 19-5 TOP: AACSB Analytic MSC: BLOOMS Analysis 67. When a seller determines the selling price by adding to cost an amount for profit and expenses not previously accounted for, the seller is using _____ pricing. a. profit maximization b. demand-oriented c. break-even d. target return e. markup ANS: E Markup pricing does not directly analyze the costs of production; rather, is uses the cost of buying the product from the producer, plus amounts for profit and for expenses otherwise not accounted for. PTS: 1 REF: 310 Thinking KEY: CB&E Model Pricing OBJ: 19-5 TOP: AACSB Reflective MSC: BLOOMS Knowledge 68. The most popular method used by wholesalers and retailers in establishing a sales price is _____ pricing. a. markup b. status quo c. formula d. marginal revenue e. break-even ANS: A Markup pricing does not directly analyze the costs of production; rather, is uses the cost of buying the product from the producer, plus amounts for profit and for expenses otherwise not accounted for. PTS: 1 REF: 310 Thinking KEY: CB&E Model Pricing OBJ: 19-5 TOP: AACSB Reflective MSC: BLOOMS Comprehension 69. Cowboy Malone’s Electric City pays a wholesaler $700 for a television and sells it to a customer for $1,500. The markup on the television is: a. $240 b. $160 c. $700 d. $800 e. $1,500 ANS: D Markup is selling price minus cost: $1,500 – $700 = $800. PTS: 1 REF: 310 KEY: CB&E Model Pricing OBJ: 19-5 TOP: AACSB Analytic MSC: BLOOMS Analysis 70. An educational toy store can buy a world globe for $30. If the store owner sells the globe for $45, what is the markup based on cost? a. 15 percent b. 20 percent c. 25 percent d. 33 percent e. 50 percent ANS: E Retail price – Cost = Markup$45 – $30 = $15$15 ÷ $30 = 50% markup PTS: 1 REF: 310 KEY: CB&E Model Pricing OBJ: 19-5 TOP: AACSB Analytic MSC: BLOOMS Analysis 71. An educational toy store can buy a world globe for $30. If the store owner sells the globe for $45, what is the markup based on the selling price? a. 15 percent b. 20 percent c. 25 percent d. 33 percent e. 50 percent ANS: D Price – Cost = Markup$45 – $30 = $15$15 ÷ $45 = 33% markup PTS: 1 REF: 310 KEY: CB&E Model Pricing OBJ: 19-5 TOP: AACSB Analytic MSC: BLOOMS Analysis 72. The difference between the retailer’s cost and the selling price is the: a. gross margin b. markup percentage c. profit d. keystone e. breakeven profit ANS: A Gross margin is the amount added to cost to determine price. PTS: 1 REF: 311 Thinking KEY: CB&E Model Pricing OBJ: 19-5 TOP: AACSB Reflective MSC: BLOOMS Knowledge 73. The owner of specialty k...
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This document was uploaded on 09/29/2013.

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