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Question 30 out of 10 pointsIn the class discussion of pricing strategies, we talked about an approach in which we start with a Price Skimming approach and then REDUCE price as our costs decline. In lecture, this approach is called:SelectedAnswer:[None Given]Answers:a. Price Skimmingb. Penetration Pricingc. Slide Down the Demand Curve Pricingd. Umbrella Pricinge. Prestige Pricing“Slide Down the Demand Curve”Involves starting with a Price Skimming approach and then REDUCING price as our costs declineThis is done to appeal toQuestion 4ResponseFeedback:0 out of 10 pointsMitsubishi's LCD projectors, where the manufacturer advertises the Model HC4900 for $3,000 as "good," the HC5000GL for $3,490 as "better," and the HC6000 for $4,000 as "best." What type of pricing strategy does this best represent?SelectedAnswer:[None Given]
Question 50 out of 10 pointsAcme Shoe Co. sells heel replacement kits for men's shoes. It has fixed costs of $6 million and unit variable costs of $5 per kit. Acme would like to earn a profit of $2 million. How many kits must Acme sell at a price of $15?SelectedAnswer:[NoneGiven]MC Qu. 216 Acme Shoe Co. sells heel replacement kits fo...AACSB: Analytical ThinkingAccessibility: Keyboard NavigationBlooms: Apply
Learning Objective: 13-05 Explain the role of costs in pricing decisions and describe how combinations of price, fixed cost, and unit variable cost affect a firm's break-even point.Level of Difficulty: 3 HardTopic: Break-Even AnalysisQuestion 60 out of 10 pointsFive common forms of misleading pricing are bait and switch, bargains conditional on other purchases, comparable value comparisons, comparisons with suggested prices, and former price comparisons. All these practices areSelectedAnswer:[None Given]