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104. The retail price of cell phones has decreased from $4,000 to less than $99 over several years. This is due in large part to which type of pricing? A. Skimming pricingB. Prestige pricingC. Odd-even pricingD. Experience curve pricingE. Customary pricing105. The retail price of fax machines has decreased from over $1,000 to less than $100 over the last decade. This is due in large part to 106. The retail price of DVD players has decreased from $900 to less than $100 over several years. This is due in large part to 107. Which of the following is a profit-oriented pricing method?
Chapter 14 - Arriving at the Final Price108. Target profit pricing refers to A. adjusting the price of a product so it is "in line" with that of its largest competitor.B. setting the price of a line of products at a number of different price points.C. adding a fixed percentage to the cost of all items in a specific product class.D. setting prices to achieve a profit that is a specified percentage of production costs.E. setting an annual target of a specific dollar volume of profit.109. Setting an annual target of a specific dollar volume of profit is referred to as __________. 110. A critical assumption when using target profit pricing is that 111. A custom tailor wishes to use target profit pricing to establish a price for a custom designed business suit. Assume variable cost is $200 per suit, fixed cost is $44,000, and a target profit of $50,000 on a volume of 50 suits is desired? What price should be charged for a typical custom suit?