Refer to tesla motors the price of the roadster was

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106. Refer to Tesla Motors. The price of the Roadster was set so that total revenue was as large as possible relative to total costs. This represents a _____ approach. a. profit maximization b. market share pricing c. demand-oriented pricing d. sales maximization e. status quo pricing ANS: A Profit maximization means setting prices so that total revenue is as large as possible relative to total costs. PTS: 1 REF: 296 OBJ: 19-2 TOP: AACSB Reflective Thinking | TB&E Model Pricing NAR: Tesla Motors 107. Refer to Tesla Motors. What is the fixed cost contribution for the Roadster given average variable costs of $50,500?
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PTS: 1 REF: 302 OBJ: 19-5 TOP: AACSB Analytic | TB&E Model Pricing NAR: Tesla Motors 108. Refer to Tesla Motors. If total fixed costs are $23,400,000 and the average variable cost is $50,500, how many Roadsters must Tesla sell to break-even? PTS: 1 REF: 305 OBJ: 19-5 TOP: AACSB Analytic | TB&E Model Pricing NAR: Tesla Motors 109. Refer to Tesla Motors. Tesla set the price of the Roadster high because the company wanted to pro- mote a high-quality image. What type of pricing does this represent? PTS: 1 REF: 309 OBJ: 19-6 TOP: AACSB Reflective Thinking | TB&E Model Pricing NAR: Tesla Motors 110. Refer to Tesla Motors. If Tesla had assets of $5 million and net profits after taxes of $550,000, what is Tesla’s return on investment (ROI)? a. 1 percent b. 9 percent c. 11 percent d. $14,135 e. $4,450,000 ANS: C Return on investment = net profit after taxes/total assets = $500,000/$5,000,000. PTS: 1 REF: 297 OBJ: 19-2 TOP: AACSB Analytic | TB&E Model Pricing NAR: Tesla Motors NARRBEGIN: Specialty Cakes Specialty Cakes
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Imagine you're planning an after-symphony fund-raising party, and you need a life-size grand piano cake. Or, you are a developer proposing a new shopping center to a group of investors, and you want to serve a cake shaped like an architectural rendition of the center. Is this impossible? No, you just need to contact Cecilia Villaveces Cakes. She actually built a life-size grand piano for a gala in Macon, Georgia. You can expect to pay anywhere from $75 to $10,000 for one of Cecilia's artistic creations, depending on complexity of design and size. She uses only the best ingredients, and no two cakes are ever quite alike. NARREND
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  • Spring '10
  • Patterson
  • Supply And Demand, AACSB Reflective Thinking, TB&E Model Pricing

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