p 341 343 The executive vice president of Washburn Guitars has set a sales

P 341 343 the executive vice president of washburn

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262.(p. 341-343)The executive vice president of Washburn Guitars has set a sales target of 2,000 units for a new line of guitars. This type of objective is most closely related to a(n) ________ pricing objective. Setting a target of selling 2,000 of the new guitars is clearly a pricing objective based on unit volume.AACSB: 3LL: 3Learning Objective: 13-02 Recognize the objectives a firm has in setting prices and the constraints that restrict the range of prices a firm can charge263.(p. 341-343)The average price Washburn charges for a guitar is $349. This price must cover its average costs of $25 for direct materials and $120 in direct labor. It must also cover fixed expenses of $38,000. Assuming everything else stays the same, the company's planned move to Nashville, Tennessee, will reduce its fixed costs by $4,800. This would cause the slope of the total cost curve to __________ and the break-even quantity to __________. The slope of the total cost curve is only affected by changes in variable cost, so the slope stays the same. But while the slope of the total cost curve stays the same, it moves lower (keeping the same slope). Thus, the total revenue and total cost curves intersect at lower (decreased) quantity, thereby decreasing the break-even quantity.AACSB: 3LL: 3Learning Objective: 13-06 Describe how various combinations of price; fixed cost; and unit variable cost affect a firm's break-even point13-220
Chapter 13 - Building the Price Foundation264.(p. 341-343)To reduce the price sensitivity for some of its products, Washburn uses To reduce price sensitivity for some of its products Washburn uses endorsements by internationally known musicians who play its instruments and lend their names to lines of Washburn signature guitars.AACSB: 3LL: 3Learning Objective: 13-04 Describe what price elasticity of demand means to a manager facing a pricing decisionEssay Questions265.(p. 319)What is StubHub's pricing formula? The StubHub pricing formula is very straightforward. Suppose you want to sell a ticket for $100. The buyer pays $110 for the ticket, the extra $10 being the 10 percent commission to StubHub. It, in turn, pays you $85 for the ticket you sold, factoring in its $15 or 15 percent commission you will pay as the seller. So StubHub makes $25 on the sale.AACSB: 3LL: 2Learning Objective: 13-01 Identify the elements that make up a price266.(p. 321)Explain the price equation in the context of a new car purchase.

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