Costs refer to the sum of the fixed and variable

13) 13)
________ costs refer to the sum of the fixed and variable costs for any given level of production.
A)
Marginal
B)
Target
C)
Break - even
D)
Total
E)
Value - based
14) 14)
Lovely Skin is establishing a pricing strategy for a new moisturizer. The total cost to produce each
unit is $3.50. The company has decided to add a $1.50 markup, so the unit price to distributors
will be $5. Lovely Skin is using a ________ approach to price the new moisturizer.
15) 15)
________ pricing is an approach whereby a firm tries to determine the price at which it will break
even or earn the profit it is seeking.
16) 16)
The Fashion Store, a new startup, sets product prices so that revenues will equal manufacturing
and marketing costs. The pricing strategy used by the company is referred to as ________ pricing.
17) 17)
Which of the following statements about break
-
even analysis is most likely true?
A)
It is a tool used to calculate fixed costs.
B)
It determines how customer - perceived value changes with value - added pricing.
C)
It fails to consider customer value and the relationship between price and demand.
D)
It is a tool marketers use to examine the relationship between supply and demand.
E)
It is used to determine the maximum price that can be set on a product.
18) 18)
Each PC produced by HP involves a cost of computer chips, wires, plastic, packaging, and other
inputs. Although these costs tend to be the same for each unit produced, they are called ________
costs because the total changes based on the number of units produced. 3

19) 19)
Los Amigos, a new Mexican restaurant, has set up shop across the street from Hot Tamales and
More. Which of the following pricing strategies will Los Amigos likely use?
20) 20)
Radox, a luxury watch brand, identifies a market segment that is willing to pay premium prices
for its watches, and Radox managers select an ideal selling price. Managers then determine the
costs to create watches that meet the ideal selling price. The company's pricing approach is
referred to as ________.